Canadian retail sales likely to have risen in January

Canadian retail sales are expected to have rebounded in January. According to a TD Economics research report, retail sales are likely to have risen 1.1 percent sequentially, led by auto sales. Core rate is expected to have rebounded in the month as well.

December was one of the worst months on record for ex autos and gasoline sales and some reversal is expected. While autos are expected to have underpinned the monthly print, the projection is in line with motor vehicle sales slowing on a year-on-year basis after averaging 9 percent year-on-year in 2017. Gasoline station receipts are also expected to have contributed positively to higher prices.

“However, higher prices for consumer goods as a whole will weigh on real retail sales, which should come in near 0.8 percent m/m and help anchor consumer spending for Q1 at 2.8 percent, significantly lower than the 3.5 percent average in 2017”, added TD Economics.

At 21:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was highly bullish at 109.737, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 34.7761. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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