Canadian retail sales likely to have remained unchanged in September

The Canadian retail sales data for the month of September is set to be released tomorrow. According to a TD Economics research report, retail sales are likely to have remained the same in September as a pullback in motor vehicle sales counters a modest rise in the core. Motor vehicles are poised for their third fall in the last four months as consumer grapple with increased debt costs and prioritize spending elsewhere.

Nevertheless, ex-auto sales are likely to have recovered by rising 0.3 percent sequentially on a rebound in import activity as well as solid employment data. Electronics are likely to have advanced from the release of new iPhone models mid-month although lower prices at the pump would be a drag on gasoline station sales.

Real retail sales are likely to have come in at or slightly above the nominal print, thanks to a modest fall in seasonally adjusted consumer prices for September.

This would cap off a relatively disappointing quarter for retail activity in Canada, with sales up a muted 0.5 percent (annualized) for Q3 as a whole, consistent with a moderation in household consumption from Q2”, added TD Economics.

At 16:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was bullish at 89.0416, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 3.20949. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex