Candian Retail Sales Rise For Third Straight Month

Canadian retail sales rose for a third straight month by 0.8%, led by gains automobiles and clothing. The headline reading was in line with expectations as a rebounding labor market has increased the outlook for future consumption. Indeed, the economy added 79,100 jobs in November as strong demand for raw materials from emerging markets and a stabilizing U.S. economy has brightened the outlook for the Canadian economy.   Additionally, the BoC has pledged to keep rates low until mid-2010 in order to ensure a recovery. A 1.2% improvement in demand for building supplies signal that fixed asset investment is increasing which is a main catalyst for future growth. The Canadian dollar surged ahead of the expected positive results and continues to gain momentum heading into tomorrow’s OPEC meeting. The oil cartel is expected to leave its production quotas unchanged which should be a supportive factor for crude prices and the “loonie”.