CAD Manufacturing Sales Actual 2.2%, Expected 2.1%, Previous -5.3%
Release Explanation: Measures the total value of sales at the manufacturing level. “A rising trend has a positive effect on the nation's currency because increased sales at the wholesale level are a good indication that there is high consumer demand at the retail level”, TheLFB-Forex.com Trade Team members said.
Trade Desk Thoughts: According to Statistics Canada, manufacturing sales increased 2.2% to $42.9 billion in February, the first increase since July 2008. Motor vehicle and motor vehicle parts industries, particularly in Ontario, were responsible for most of the gains in February, following widespread slowdowns and shutdowns in January. Excluding motor vehicles and parts and accessories, manufacturing sales decreased 0.2% the seventh monthly decline in a row.
Constant dollar manufacturing sales, which are measured in 2002 prices, rose 2.6% to $39.4 billion in February. This was the first increase in constant dollar sales since September 2008
At the industry level, sales in 9 of 21 manufacturing industries increased in February, accounting for about 45% of total sales.
Forex Technical Reaction: The Canadian dollar has strengthened since just before the U.S. session open and has strengthened further since the release. Since the start of the current trading day the cad has dropped 45 pips.