CAD Currency Not Affected? Canadian Retail Sales Record Slight Recovery

<p>&nbsp;Canadian retail sales rose more than expected in June, with data also showing a pick-up in activity in July.</p><p><br /></p><p>Retail sales jumped 0.4% last month, the strongest rate of growth since April, according to preliminary estimates from Statistics Canada released on Wednesday. This followed an increase of 0.1% a month earlier, which exceeded the median estimate for a flat reading. On a volume basis, retail sales fell 0.2% in June.</p><p><br /></p><p><br /></p><p>Only three of the nine subsectors saw an increase in sales during the month, namely motor vehicle and parts dealers, sporting goods stores, and gas stations. Excluding vehicles, retail sales fell 0.8% compared to expectations for a 0.3% increase.</p><p><br /></p><p>The report shows that Canadians are continuing to spend on big items like cars, which may be a result of delayed demand and shipping delays during the pandemic. While sales for sporting goods were still up, spending on other interest rate-sensitive products, including furniture, shrank in June.</p><p><br /></p><p>USD/CAD rose 37 pips or 0.34% to 1.3586 on this news.</p>