Canadian Dollar the Weakest of the Day as Retail Sales Disappoint

The Canadian dollar ended Friday as the weakest of the majors after Statistics Canada said that retail sales tumbled 0.8 percent during April after rising throughout Q1. The drop was disappointing in light of expectations for a 0.1 percent increase, and a breakdown of the report shows broad declines in most of the components, including gas stations (-1.9 percent), furniture/electronics (-0.8 percent), food & beverage (-1.0 percent), pharmacies (-0.4 percent), and clothing (-0.6 percent). The news doesn’t bode well for Q2 GDP results, as it suggests that consumption remains lackluster amidst mounting job losses, and adds to the Bank of Canada’s deflation concerns.