Preliminary Statistics Canada data show retail sales rose 0.7% YoY in September,
with growth expected to slow from August's 1.2% increase that was driven by
gains across all nine subsectors. Sales by volume also rose 1.2% in August.
Economists had warned August's rebound could be temporary after an escalation of
US trade tensions. The retail print is the last major data point ahead of next
week's BOC policy decision. Overnight swaps traders have pushed the implied
probability of a BOC rate hike next week above 80% after several traders and
economists flipped to a hawkish stance over the past week.
