Major Miss: Cdn Retail Sales

[errolanderson]

http://www.bnn.ca/loonie-slides-as-retail-sales-unexpectedly-fall-0-3-in-august-1.890697

Economic reality now kicking in . . . August Cdn retail sales were a dismal -0.3%. Loonie under heavy selling pressure this morning.

Chances of further Bank of Canada rate hikes in 2017 dimmed considerably . . . .

[bucket]

Well maybe they should raise rates again....or make it harder to buy a house.....maybe they don't understand the correlation to their policies.....

[errolanderson]

Well maybe they should raise rates again....or make it harder to buy a house.....maybe they don't understand the correlation to their policies.....

bucket, loonie fallout is good news for canola and cattle prices, etc . . . .

[bucket]

Interesting factoid while it maybe good for canola and cattle prices.....it usually means a price increase on every thing I buy and those prices never fluctuate with grain or cattle prices....


Canola could go to 16 dollars and then back down. ....a combine baler tractor never seems to track that...nor does milk or bread....


If it did from the 70s we would have 25 dollar wheat and the like.

[farming101]

CAD target .7834

[mcfarms]

Some earlier locked in decent basis canola contracts should be hitting in the 11.40 plus range this morning for those that have them.

[errolanderson]

Cdn consumers have very little tolerance to interest rate hikes that quickly disrupt spending patterns. This appears to be unknown to the Bank of Canada.

Record-breaking consumer debt overhangs real economic growth beyond current out-of-control Federal government deficit spending (IMO).

Agree, further potential weakness in the loonie ahead . . . .

[sumdumguy]

Governments use monetary policy which includes interest rate adjustments to control inflation. Another tool would be shrinking the money supply by various means. What do you prefer Errol?

[Rareearth]

Correction 101
Target is .60

[Klause]

None of the media is reporting the pull back.... Just make fake reference to the "red hot" economy first half of the year.... The collapse of Canada's economy is coming closer... And it will be epic