Wholesale trade sales -1.0% versus -0.3% expected
- The Canada manufacturing sales for November came in weaker than expected at -1.4% versus -1.0% expected.
- Wholesale trade sales also were weaker and -1.0% versus -0.3% expected.
- The prior month for wholesale trade sales was revised lower to +0.7% versus 1.0% previously reported. Manufacturing sales fell -0.1% last month (unrevised)
- The wholesale sales drop was the biggest one-month decline since March 2016
- the factory sales fall was the largest since January 2018
The data is indicative of a slowdown in the Canadian economy as a result of a slump in the country's oil sector and weaker global growth. The Bank of Canada indicated less urgency for further interest rate increases at their last meeting. The expect growth to equal 1.3% in the 4th quarter and decline to 1% in the 1st quarter 2019.
The USDCAD has moved higher after the release - moving back toward the high for the day after a corrective move lower into the North American session. The high for the day reached 1.33425 early in the day. The price is moving away from swing highs going back to January 8 at the 1.33178 – 215 area. That is now risk for the pair. The 38.2% retracement of the move down from the December 31 high, comes in at 1.33643. That is the next target on a break above today's high.
