Canada reports July CPI and June retail sales – BBH

Research Team at BBH, suggests that Canada’s headline inflation is expected to tick lower to 1.4% y/y, while core is seen steady at 2.1% y/y. 

Key Quotes

“Headline retail sales are expected to rise 0.5% m/m, while ex-auto sales are expected to rise 0.3% m/m.  Recent softness in the data has led the market to think about potential easing by the Bank of Canada.

USD/CAD broke support near CAD1.2800 Thursday.  The next chart-based support near CAD1.2765 has held for now, but a break below would spur another big figure more toward CAD1.2650.  The weaker US dollar environment and higher oil prices appear to be the main drivers for the Loonie, up 1% vs. the greenback this week.”