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CAD Retail Sales Actual 0.3%, Expected 0.5%, Previous 0.2%
CAD Core Retail Sales Actual -0.2%, Expected -0.2%, Previous 0.5% (Revised from 0.6%)
Release Explanation: Retail Sales are a very important set of figures that make up a large percentage of consumer spending numbers. Retail sales are the measure of the total sales of goods and services by retail stores. Service-based economies rely on the strength of the consumer to keep things moving along, this therefore impacts PCE and CPI, the Inflationary reports.
“A currency will be impacted by this report over time as it reveals the strength of the public in their ability, or desire, to spend. Steady increases in retail sales apply significant inflationary pressures to consumer prices. With retail trade being the foremost indicator for consumer spending, this figure is extremely important in understanding the economy.” TheLFB-Forex.com Trade Team said.
TheLFB-Forex.com Trade Desk Thoughts: According to Statistics Canada, retail sales rose 0.3% in March after rising 0.2% in February. “This comes, after the last few months of 2008 saw retail sales decline at a record pace. To some extent, it is unclear whether the trend is resuming its upside trend, or retail sales just bounced off the lows,” TheLFB-Forex.com Trade Team said.
The main contributor to the rise in retail sales was a 3.6% increase in sales at new car dealers. This was lower than the 6.3% rise in the number of new motor vehicles sold reported by the New Motor Vehicle Sales Survey, as dealers offered higher rebates. The automotive sector as a whole increased by 0.5%, as the rise in sales at new car dealers was partially offset by lower sales at gasoline stations (-2.8%) and used and recreational motor vehicle and parts dealers (-2.6%).
Sales at food and beverage stores rose for the third consecutive month, increasing 0.9%. This reflects in part higher food prices. Food and beverage stores and pharmacies and personal care stores are the only two sectors where March's sales level was above the October 2008 level.
Forex Technical Reaction: The cad has declined 160 pips so far today, breaking below the 1.1300 support area to reach 7 month low. This week the cad headed lower on a daily basis, declining a total of 550 pips, the most in the last six months.
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