Canada retail sales dropped -0.1% mom in May, much worse than expectation of 0.3% mom. Ex-auto sales dropped -0.3% mom, also much worse than expectation of 0.4% mom. Sales were down in 4 of 11 subsectors, representing 39% of retail trade. Sales also dropped in eight provinces.
USD/CAD rebounds strongly after the Canadian data disappointment. Though, upside is limited below 1.3143 resistance. There is no confirmation of short term bottoming yet and another fall remains mildly in favor.
