Canada: Manufacturing sales to print below consensus -0.2% figure for May – RBC CM

Analysts at RBC Capital Markets are below consensus at -0.2% m/m for Canada’s May manufacturing sales report (cons. +0.8%, prior 1.1%).

Key Quotes

“The weakness that we are expecting is led by a 7% decline in petroleum and coal sales as oil prices moved lower in the month. Excluding the petroleum and coal component, we look for a 0.7% increase in sales that is consistent with a strong gain in non-energy exports in May. Excluding the impact of prices, we expect that overall sales volumes rose 0.3% to build on the 0.5% increase in April. USD/CAD features minor support at 1.2581, with the 2016 low at 1.2461 coming into focus below there. Resistance is located at 1.2685.”