The Canadian Imperial Bank of Commerce (CIBC) Research Team enlists key macro events due to be reported from Canada later today at 1230 GMT.
Key Quotes:
“May Retail sales
Harsh weather conditions kept shoppers away in April.
Early indications suggest that the following month saw sales speed ahead.
Led by a strong rebound in car purchases.
Even ex-autos reading should benefit from a return to more seasonable weather.
Rebound in retail sales will support a decent monthly GDP print, it’s unlikely to be the beginning of a new trend.
The slower pace of job creation in 2018 combined with rising consumer borrowing rates will leave consumption providing less of a contribution to growth this year.
June Inflation
A surprise decline in ex-food and energy prices meant that May was the second consecutive soft reading.
Rebound is in store.
With a fall in gasoline, look for headline prices to advance 0.1% NSA, leaving the annual rate accelerating to 2.4% from the 2.2% it has been tracking since April.
That said, the Bank of Canada’s core common component measure should remain steady at 1.9% for the fifth straight month.”
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