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Slight Miss For Manufacturing Sales Helps Modest GoC Rally

CANADA DATA
  • Manufacturing sales were softer than expected in November, flat vs expectations of a 0.3% M/M edging higher after surging 2.8% back in October.
  • With industrial product prices falling -0.4% M/M, it left volumes increasing just 0.1% M/M.
  • Strength was concentrated in motor vehicles (+13%) after three consecutive declines “as production in several assembly plants in Canada ramped up, which in turn led to higher capacity utilization rates amid supply constraints.”
  • Market reaction limited for a miss in a volatile report, a modest GoC rally extends with the belly now 3bp richer vs 2bp shortly after open, whilst USDCAD holds at 1.34. Further data ahead.

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