Canadian Dollar dives notably after a set of much weaker than expected data.
Headline retail sales dropped -0.1% mom in August versus expectation of 0.4% mom. Ex-auto sales dropped -0.4% mom versus expectation of -0.2% mom.
Headline CPI dropped sharply by -0.4% mom in September versus expectation of -0.1% mom. Annually, CPI slowed to 2.2% yoy, down from 2.8% yoy and missed expectation of 2.9% yoy.
CPI core common slowed to 1.9% yoy, down from 2.0% yoy. CPI core median slowed to 2.0% yoy, down from 2.1% yoy. CPI core trim slowed to 2.1% yoy, down from 2.2% yoy.
The set of data, in particular the sharp fall in CPI, raises the important question of whether BoC is still going to hike next week on October 24.
Full CPI and retail sales release.
