Canada: Focus on retail sales and CPI - TDS

Research Team at TDS, suggests that the release of June retail sales and July CPI makes for an interesting Friday for CAD, especially with an empty US calendar.

Key Quotes

“TD is slightly below market on all-items CPI to slow from 1.5% to 1.3% (mkt: 1.4%) while prices should see a modest decline of 0.1% m/m (mkt: 0.0%). We are in line with the market on core CPI and expect to see no change in prices or the 2.1% y/y inflation rate.

For retail sales, we are in line with the market on a headline basis (+0.5% m/m) but are below consensus once motor vehicle sales are excluded. We look for core retail sales of 0.1% m/m while the market expects +0.3%.”