Release Explanation: Measures the total value of sales at the wholesale level. A rising trend has a positive effect on the nation's currency because increased sales at the wholesale level are a good indication that there is high consumer demand at the retail level.
Trade Desk Thoughts: Wholesale sales in November declined for a second month, Statistics Cananda said today. It was the first back-to-back monthly decline since 2006.
Sales fell 1.6% 44.4 billion after a 1.8% decrease in October. Farm supplies and chemicals led a 6% drop in the “other products” category, while automobile sales fell 2.2%, bringing the industry’s decrease over the past year to 16%. The ratio of wholesale inventories to sales rose to the highest since February 2001, growing to 1.32 in November from 1.28 the previous month, an indication of slowing orders. Inventories rose for a ninth straight month.
Forex Technical Reaction: The cad is rising for a third day on speculation the BoC will continue lowering interest rates,as indicated in yesterday's interest rate statement. Crude for March delivery was recently trading up $2.34 (6.41%) to $38.85 per barrel.