Canadian retail sales better than expected but forget buying the CAD today!
Well, the Canadian retail sales numbers have come in better than expected for June, printing a flat month against forecasts for a 0.1-0.3% fall. Ex auto sales were also much better at +0.9% vs a flat reading expected, but after a very brief blip up in the CAD, the market was soon reminded that there are much bigger fish to fry today.
The Chinese tariffs will now take centre stage and as we can see, the commodity-linked currencies led by the AUD, and including the CAD, are now coming under pressure against the USD, but less so vs the JPY as USD/JPY continues to stubbornly hold its ground for now.
We suspect USD/CAD is more likely to test higher levels into the mid 1.3300's again, as this data is set to pale into insignificance as risk sentiment will dictate from here.