Canada May retail sales -0.8% vs -0.6% expected

• Prior was +0.7% (revised to +0.6%)
• Ex autos -1.3% vs -0.5% expected
• Prior ex-autos +1.8% (revised to +1.7%)
• Ex autos and gasoline -1.4% vs +1.4% prior
• Largest decrease in sales was at food and beverage retailers (-1.9%)
• Lower sales in May were also reported at building material and garden equipment and supplies dealers (-2.7%) and general merchandise retailers (-1.0%)
• Preliminary June data -0.3% m/m
• Full report

The market was pricing in a 95% chance of a BOC cut ahead of the data and I’d say it’s a certainty after this with the case growing to continue cuts at the Sept meeting.

The Canadian consumer is rolling over. In a separate report, the Scotiabank Canadian Spending Tracker ended Q2/24 on a weak note, with June’s year-over-year growth at +2.6%, its weakest since early 2021 during the pandemic.

USD/CAD is up 17 pips to 1.3722, which is the highest since July 1.

This article was written by Adam Button at www.forexlive.com.