The weaker-than-expected report on Canadian wholesale sales was followed by a modest reaction in the market. The Loonie gained against the US Dollar only 4 base points to reach the 1.2582 mark and continue downmove in the Tuesday’s morning session.
Statistics Canada reported that the country’s wholesale sales fell 0.5%over the course of June, missing expectations for a 0.6% gain after an upwardly revised 1.0% rise in the prior month. Analysts suggested the weak report was unlikely to cause concerns, as only one monthly decline was registered. However, both retail and wholesale sales revealed generally strong growth momentum in previous months, which allowed the Bank of Canada to remain confident about the near-term outlook.