Canada: Setting up for retail sales (March) and CPI (April) – TDS

By FXStreet Research Team at TDS, suggests that Canada’s retail sales will complete the full swath of activity data for Q1 following the release of manufacturing and wholesale sales earlier this week.

Key Quotes

“With Q1 GDP tracking at 2.7% following the wholesale sales report, a retail print that’s moderately close to consensus will help to affirm the Bank of Canada’s 2.8% target from the April MPR. CPI data for April will be released simultaneously but will take a backseat to retail sales.

Retail Sales: Industry reports of stronger auto sales and rising prices at the pump will team up to lift retail sales by a forecasted 0.4% m/m. Stripping out the influence of the former, ex-auto sales are forecast to show a respectable 0.3% monthly advance which reflects a firm month for existing home sales and an expectation of continued spending across general merchandise categories. This outcome would also be consistent with rising measures of consumer confidence.

CPI: Rising gasoline prices are expected to push the nonseasonally adjusted all-items price index higher by 0.2% m/m in April. This monthly advance will cause the year-ago metric to accelerate to 1.6% due in part to more favourable base-year effects. Core prices are not expected …read more

Source:: FX Street