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Canada's manufacturing and wholesale sales data, set to be released on Monday, and retail sales figures on Friday, are expected to show a rebound in economic growth following a contraction in Q1. Statistics Canada's preliminary estimates suggest a 4.6% rise in manufacturing sales and a 0.6% increase in retail sales, partially driven by higher petroleum prices. These figures align with the Bank of Canada's outlook for a Q2 growth recovery.
The data will influence market perceptions of Canada's economic health, potentially affecting the Canadian dollar (CAD) and investor confidence. A stronger-than-expected rebound could signal improved domestic demand and industrial activity, supporting the central bank's policy stance. Traders may also monitor how these reports interact with global commodity prices, particularly oil, which remains a critical export for Canada.
For Gulf and MENA investors, the data underscores the importance of tracking commodity-linked economies. If the recovery gains momentum, it could bolster CAD against majors like USD and EUR, impacting forex strategies. Key watchpoints include the role of energy prices and whether the rebound is broad-based or sector-specific.
