Canadian Sales Report Set to Create Market Volatility
December 21st, 2009 Posted in In-Depth Analysis, Market Movers
Name: Dan
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The Canadian Core Retail Sales Report, set to be published today at 13:30 GMT, promises to inject some volatility into what has been a slow trading day. The report is a measure of the change of total value of retail sales, excluding automobile, over the last month. Even though automobile sales make up some 20% of the Canadian retail market, they are left out of the report as they tend to create a distorted picture of Canada’s overall economic growth.
Last month saw a surprise increase of 1.1% in retail sales. This figure gave an unexpected boost to the loonie, which was able to hold strong over the last few weeks against a strengthening U.S. Dollar. As for today’s figures, analysts are predicting a slightly smaller increase of 0.4%.
If the forecasted figure indeed comes true, traders can expect a slight boost for the Canadian Dollar against its major counterparts. If the number comes in higher than expected, the loonie could see broad gains. Conversely, if the figure comes in at a negative number, the U.S. Dollar could make impressive gains against a weakened Canadian Dollar.
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Tags: Canadian, loonie, Retail Sales, U.S. Dollar
