Data released on Friday showed retail sales rebounded as expected in June and preliminary numbers point to a decline in July. Analysts at CIBC, explained that even with the slight retreat, retail sales were still well-above their pre-Covid levels in July.
Key Quotes:
“There's nothing like some retail therapy to cure the post-lockdown blues. Retail sales staged a major comeback in June as restrictions were eased across the country. While Canadians seem to have taken a bit of a breather in terms of goods purchases in July, that's likely only because they were out spending more dollars on services. And, even with the slight retreat, retail sales were still well-above their pre-Covid levels in July.”
“Retail sales advanced 4.2% in June, in line with the lofty expectations for the month. Gains were relatively broad based with 8 of 11 subsectors rising. That said, particular strength was seen in clothing store receipts, which rose a whopping 49% in June.”
“Statistics Canada's flash estimate for July suggested a somewhat disappointing 1.7% retreat in sales. We're hoping that just meant that Canadians were spending more money on hard-hit services that became available again. Indeed, it's likely that Canadians probably started replacing some goods purchases with services during the month.”
“At this point, we're not too concerned with the slight pullback in retail sales in July, as it's likely just a by-product of households spending more on services again. Overall, with the return of those aforementioned services, the third quarter looks like it will be a barnburner for the economy. That said, we're now holding our breath for the fourth quarter, with the beginning of a fourth wave seemingly here.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

AUD/USD bears pause for a breather ahead of US PCE data
AUD/USD touched a nearly four-week low on Friday, though it lacks follow-through as traders opt to wait for the release of the US PCE Price Index later during the US session. The crucial US inflation data could offer cues about the Fed's rate-cut path and drive the USD.

USD/JPY flat-lines below 150.00 after softer Tokyo CPI print
USD/JPY holds steady near the top end of its weekly range following the release of softer-than-expected Tokyo CPI, though it struggles to find acceptance above the 150.00 mark. The BoJ's rate-hike plan, along with a weaker risk tone, underpins the safe-haven JPY and caps the pair amid subdued USD price action.

Gold price hangs near two-week low; US PCE data awaited
Gold price languishes near a two-week low touched on Thursday as traders await the release of the US PCE Price Index for cues about the Fed's rate-cut path. The crucial inflation data will influence the USD and provide a fresh directional impetus to the non-yielding yellow metal.

Crypto AI altcoin market rallies fueled by NVIDIA's Q4 earnings: KAITO, GRASS, Berachain price analysis
Crypto AI tokens’ aggregate valuation rose $660 million on Thursday as investors reacted to NVIDIA’s Q4 earnings report. Market data show investors prioritized three low-cap tokens during the rally, while large-cap AI projects like ICP, Near Protocol and Render moved sideways.

February inflation: Sharp drop expected in France, stability in the rest of the Eurozone
Inflation has probably eased in February, particularly in France due to the marked cut in the regulated electricity price. However, this overall movement masks divergent trends. Although disinflation is becoming more widespread, prices continue to rise rapidly in services, in France as well as elsewhere in the Eurozone.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.