Canadian retail sales likely to have grown sequentially in November – TD Economics

Canadian retail sales are expected to have grown sequentially in November. According to a TD Economics research report, sales are likely to have risen 0.8 percent on a broad advance. Auto sales are likely to make a positive contribution on stronger commercial vehicle sales while a sharp rise in gasoline prices would give a nominal tailwind to gasoline station receipts.

While auto sales are expected to have outperformed the headline print, the ex-autos metric is expected to have come in just slightly weaker at 0.7 percent. Meanwhile, core retail sales are expected to have seen a more modest advance. Employment data is in line with a strong headline print and solid Black Friday sales should have also provided a tailwind, stated TD Economics.

“Real retail sales are likely to come in just below the nominal print due to a modest increase in CPI, which would be consistent with Q4 consumer spending near a 3% pace”, added TD Economics.

At 20:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral 15.156, while the FxWirePro's Hourly Strength Index of US Dollar was bearish at -99.8697. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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