BREAKING: CAD weakens after retail sales miss

Canadian retail sales data for June was released today at 1:30 pm BST. Market was expecting headline sales to come in flat compared to a month ago (0.0% MoM) and sales excluding autos to increase 0.3% MoM. Actual data turned out to be mixed. Headline sales increased 0.1% MoM while previous month's increase was revised lower from 0.2 to 0.1% MoM. Meanwhile, sales excluding autos plunged 0.8% MoM with previous month's reading being revised lower from 0.0% MoM to -0.3% MoM.

Report highlighted the weakening of the Canadian consumer and it is not a desired outcome. Weaker demand in the economy will give Bank of Canada less reason to be hawkish. Money markets are currently pricing in just 19 basis points of BoC tightening by the end of this year. Canadian dollar weakened in response with USDCAD reaching an almost 3-month high near 1.3580 mark.