Manufacturing sales unexpectedly fell in April, as an 0.6 percent monthly decline followed a sharper revised 2.6 percent increase in March. Year-on-year growth nevertheless rose to 3.1 percent from 2.0 percent previously, thanks to favorable base effects. In volume terms, sales fell 0.8 percent in April after rising 1.6 percent in March.
The CAD is stronger even with the weaker than anticipated manufacturing sales, this morning’s headlines are dominated by President Trump’s comments that he would hold an extensive meeting with Chinese President Xi Jinping at the G20 summit later this month. The Chinese side has not confirmed a meeting would take place. Chinese state media said Xi agreed to the meeting and emphasized in the call that economic and trade disputes should be solved through dialogue. Oil prices have jumped 4% based on this news, plus the fears of a confrontation between Iran and the United States have mounted since last Thursday’s oil tanker attacks, which Washington has blamed on Tehran. Iran has denied involvement.
U.S. equities rallied on Tuesday, with the S&P 500 inching close to record levels, as President Donald Trump’s comments added to optimism of a more accommodative Federal Reserve.
Currently Close Range
USDCAD 1.3395 1.3413 1.3385-1.3432
EURCAD 1.4991 1.5047 1.4972-1.5084
GBPCAD 1.6798 1.6812 1.6756-1.6832
CA: Manufacturing Sales April M/M 2.6% -0.6%
Y/Y 2.0% 3.1%
US: Housing Starts May 1.235M 1.269M