BREAKING: CAD drops after retail sales data

Canadian retail sales report for May was released today at 1:30 pm BST. Report was expected to show monthly declines in headline as well as core retail sales, following big increases in April. However, actual data showed an even deeper than expected drop, putting pressure on CAD. Bank of Canada is meeting next week to decide on rates and money markets fully price in a chance of 25 basis point rate cut. Weak retail sales reading is another argument for BoC to cut rates.

Canada, retail sales for May

• Headline: -0.8% MoM vs -0.6% MoM expected (+0.7% MoM previously)
• Ex-autos: -1.3% MoM vs -0.5% MoM expected (+1.8% MoM previously)

USDCAD jumps after disappointing Canadian retail sales reading for May. Source: xStation5