November Retail Sales Beat Estimates; Canadian Dollar Pares Loss
THE TAKEAWAY: Canadian Retail Sales Topped Consensus Forecast> Sales in Gasoline Stations, Motor Vehicle and Part Dealers and Clothing Stores Climbed > Canadian Dollar Pares Loss
Canadian retails sales climbed for the fourth straight month in November, fueled by higher sales in gasoline stations, motor vehicle and part dealers and clothing stores. Sales in retail stores unexpectedly rose 0.3 percent to a seasonally adjusted C$38.7 billion in October, Ottawa-based Statistics Canada reported today. The print exceeds economists’ estimate of 0.2 percent gain. From a year earlier, retail sales advanced 3.1 percent. The less volatile figure, excluding auto sector, edged up 0.3 percent, topping consensus forecast of 0.2 percent increase.
Canadian Retail Sale: June 2010 to Present
Prepared by Trang Nguyen
Sales in retail stores for November exceeds consensus forecast as gains were reported in seven of eleven major categories that account for sixty-five percent of total retail sales. Gasoline stations sales moved up 0.8 percent. Meanwhile, sales at motor vehicle and parts dealers advanced 0.3 percent in which stronger tire sales led 5.1 percent surge at automotive parts, accessories and tire stores. New car purchases modestly increased 0.1 percent while both used car and other vehicle purchase declined, 0.5 percent and 1.4 percent, respectively. Sales in clothing and clothing accessories stores mounted for the third consecutive month, up 0.9 percent, since massive holiday sales appealed more shoppers. Likewise, receipts at sporting goods, hobby, book and music stores rose 2.9 percent, following 1.7 percent gain in the previous month. On the other hand, furniture and home furnishing registered 0.8 percent decrease in November, the third straight monthly fall in the row.
Regarding to region, increases in retail sales were reported in five of thirteen major provinces in November, among which Saskatchewan registered for the largest percentage gain of 1.3 percent. Alberta experienced the second largest percentage increase of 1.0 percent after jumping 3.0 percent in November. In contrast, sales slumped in all of the Atlantic provinces among which Nova Scotia reported the largest decrease of 1 percent.
USD/CAD 1-minute Chart: January 24, 2012
Charts created using Strategy Trader– Prepared by Trang Nguyen
The Canadian dollar was traded under pressure today as worries about disagreement between Greece and creditors dampened market sentiments. The loonie pared loss versus the greenback by about 15 pips from 1.0135 to 1.0125 a minute after retail sales came in stronger than expected. However, the USD/CAD exchange rate was immediately corrected and climbed to 1.0140 after ten minutes. At the time this report was written, the Canadian dollar retraced to $C1.0132 per U.S. dollar
--- Written by Trang Nguyen, DailyFX Research Team for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.