Canada: Retail Sales rise by 1.1% in April vs. 0.2% expected
|- Retail Sales in Canada increased at a stronger pace than expected in April.
- New Housing Price Index rises 0.1% in May, first increase since August 2022.
- USD/CAD remains around 1.3210/20, marginally lower for the day.
Statistics Canada reported on Wednesday that Retail Sales rose by 1.1% on a monthly basis in April. This reading came in higher than the market expectation for an increase of 0.2%.
“Core retail sales—which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers—increased 1.5% in April. In volume terms, retail sales increased 0.3% in April”, Statistics Canada noted in its publication. Excluding motor vehicle and parts dealers sales advanced 1.3%.
"Statistics Canada is providing an advance estimate of retail sales, which suggests that sales increased 0.5% in May. Owing to its early nature, this figure will be revised. This unofficial estimate was calculated based on responses received from 40.6% of companies surveyed. The average final response rate for the survey over the previous 12 months was 89.2%."
A different report showed a “slight uptick in new home prices in Canada in May”. The New Housing Price Index increased 0.1% month over month in May, its first increase since August 2022, surpassing expectations of 0%.
Market reaction
The USD/CAD remained steady, hovering around 1.3210/20 following the upbeat report. At the same time, Federal Reserve Chair Powell's speech was released and strengthened the US Dollar somewhat.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.