Canadian Dollar surges sharply in early US session after stellar retail sales data. Headline retail sales rose 2.0% mom in May versus expectation of 0.0% mom. That’s more than offset -1.2% mom contraction in April. Ex-auto sales also jumped 1.4% mom, well above expectation of 0.5% mom.
Headline CPI accelerated to 2.5% yoy in June as expected. CPI core common was unchanged at 1.9% yoy. CPI core median rose 0.1% to 2.0% yoy. CPI core trim rose 0.1% to 2.0% yoy.
Now, it really looks like BoC was correct to hike and stays hawkish.
