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Booming Input Prices and Solid Retail Sales

CANADA DATA
  • Largest monthly rise in industrial product prices since 1956 – nearly double the pace expected at +4.0% M/M, led by refined petroleum. Ex-energy industrial prices were softer but still +2.3% M/M.
  • There was also a modestly stronger than expected retail sales print in Feb, up 0.1% M/M which saw volumes only dip -0.4% M/M, and with the March advanced print implying a small bounce in volumes.
  • The combination sees GoC 2Y yields rise 1bps and USDCAD dip back from earlier highs, down 20pips at 1.2661.

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