Canadian manufacturing sales likely to have grown in July

Canadian manufacturing sales data for the month of July is set to be released tomorrow. According to a TD Economics research report, manufacturing sales are likely to have risen 0.3 percent in July. Durable goods are expected to have driven the advance on further rises in motor vehicle output, as foreshadowed by a rebound in exports, which is likely to more than counter a drag in metals from steel and aluminium tariffs

.Retaliatory tariffs were imposed on 1st July; however, it will have slight effect on manufacturing as a whole given that a major portion was directed towards goods for consumption. Energy might also be a modest headwind due to a fall from the 15 percent rise in June though oil sands shutdowns are not expected to have a considerable effect on downstream activity.

“Volumes should see a more modest gain (~0.1 percent) on higher factory prices which indicates little to no contribution to industry-level GDP growth in July”, added TD Economics.

At 20:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral at 3.19593, while the FxWirePro's Hourly Strength Index of US Dollar was highly bearish at -105.2. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex