CAD Manufacturing Sales Actual -2.7%, Expected 1.2%, Previous 2.2%
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.
Trade Desk Thoughts: According to Statistics Canada, manufacturing sales decreased 2.7% in March to $41.4 billion, reversing February’s gain. With this decrease, manufacturing sales have fallen almost 25% from their peak reached in July 2008, with most of the drop occurring between November 2008 and January 2009.
Durable goods industries such as aerospace parts and products, motor vehicle parts, and primary metal products were behind most of the losses in March.
Constant dollar manufacturing sales decreased 2.4% in March to $38.2 billion, indicating that most of the decline was due to a drop in the volume of sales.
Forex Technical Reaction: The cad has dropped significantly since the 08:30 EDT releases due to the weakness of the dollar and not Canadian dollar strength in reaction to this report.