Loonie Tumbles After Canadian Retail Sales Suffer Biggest August Slump Ever

Tyler Durden's picture

Blame the storms... oh wait!

Despite rate-hikes, exuberant discussions from BoC speakers about the economy, and 'hope' - a lot of 'hope', Canadian retail sales plunged in August...


This is the biggest drop in retail sales since Dec 2015 and is the biggest August drop on record.

And the reaction in the Loonie is clear...

As hope for more rate hikes fades.

Though we are sure this is merely transitory.

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junction's picture

Icebergs ahead! Captain Trump, what should we do?  Captain Trump. . .

sun tzu's picture

Because Trump is president of canada...you stupid son of a whore

King of Ruperts Land's picture

Canada is still sore that Hitlery is not their President.

sheikurbootie's picture

Trump is the President of the USA. 

Captain Crunch is the leader of Canada.

LawsofPhysics's picture

LOL!!  Winter is coming...

That is all you need to know if you are in Canada right now.

mpnut's picture

TRUE! Canada is in the beginning of a winter cycle right now (Economically Speaking).  The expensive loonie, the deficite, the Refugee run on the borders, the lack of employment, Lack of rental units, expensive housing...  The straw will soon break the Camels back

The Real Tony's picture

The only growth coming out of Canada has been home renovations in Ontario. People have been renovating in an effort to sell their home on mls. Looks like all the renovations have now ended. New tax rules for small businesses. Increase in the minimum wage next year in Ontarion and Alberta. New mortgage rules starting January 01, 2018. All these will put Canada into recesssion next year making shorting the Loonie the number one trade for 2018. I'm betting the farm Poloz will chop the Bank of Canada rate to half a percent from one percent next year. I've bought up plenty of Government of Canada 30 year bonds.

mpnut's picture

Ontario has more Realtors per Households than Chicago.  I have a friend who hasn't had a listing since June...  

CPL's picture

There are only two seasons here.  Winter and Construction.

CRM114's picture

Except in Manitoba, where it's Nearly Winter, Winter, Still Winter, and Mosquitos

HappyDeathMetal's picture

You forgot the 3 weeks of scorching hot heat in the middle of Construction, but technically, that is still construction season.

Smegley Wanxalot's picture

Canadian retail sales will explode if they would only import more muslims.

Arnold's picture

Der's yer hole in da wall right there, eh?

Beer Canada strives to provide the brewing community with up-to-date industry sales figures


CPL's picture

We tried that and they keep dying off from elevated levels of radiation here or leaving when it's cold.  Out of the 10k of syrians half have already left to go back to syria after two winters.  Past two winters were nice as well, this winter though it's going to be bad.  Anycase lousy fucking investment if you ask me.  All that money and they didn't bother putting collars on the slaves we bought from Assad.  Should have pushed for more student emmigration from Europe/the Pac Rim and the families there with real money and committments.  So far not impressed with the quality or staying power of the imports they arranged for slave labour.

HappyDeathMetal's picture

I saw some mulsims shivering their asses off last winter and it wasn't even cold. I thought it was hilarious, looked like he was going to die just walking from the grocery store haha.

GotAFriendInBen's picture


As in all of 6 years?

Blame it on Marie, or Harvey, or Harvey Weinsten

Village-idiot's picture

I down-voted your comment because it makes absolutely no sense.

yogibear's picture

Always in this teflon, Federal reserve rigged market, buy stocks.


GotAFriendInBen's picture

Just include stock purchases in retail sales numbers

TheSilentMajority's picture

Chinadastan needs QE eh.

AlphaSeraph's picture

All currencies are red vs the USD right now and many are half a percent weaker or more vs the USD. loonie is -0.71%. This is more a USD story than a CAD story if the writer had checked out a currency page.

Spiddy senses tingling. EVERY currency on my board is red vs USD. Watch the morning markets closely.

AlphaSeraph's picture

Ohhhh 1 just went green, the British pound, barely green.

AlphaSeraph's picture

As of 9:28 Eastern, just before the open, nearly all those currency loses vs USD have gotten much larger. Many now around -0.75%.

I'm sure it's nothing (snark).


shankster's picture

Loony tumbled..so what, so did Humpty Dumpty.

robertocarlos's picture

We're waiting for the iPhone YYZ.

The Real Tony's picture

I've been quietly buying up Government of Canada 30 year bonds the past couple of weeks and shorting the Canadian dollar above the 80 cents mark. The Bank of Canada has been selling Canadian dollars every time the Canadian dolllar has risen above the 80 cents mark meaning shorting the Canadian dollar above the 80 cent mark is like free money or stealing. Looks like the Loonie will test the 69 cent or less range next year. I've been shorting the Loonie against the Aussie dollar and against the Euro. Shorting the Loonie for 2018 could be the most profitable trade of all trades next year and like I said if you can ever short the Canadian dollar above the 80 cents mark its stealing money as the risk is zero.


I'll go on record as saying the number one trade for 2018 will be shorting the Canadian dollar. Canada technically will enter recessioin next year even as Poloz keeps on cutting the Bank of Canada rate.

FringeImaginigs's picture

If the Real Tony were a REAL TRADER then he would know that the relation between the $USD and the $CAD is called the USDCAD, which measures the price of one USD in terms of Canadian dollars.  So it's not .80 or .69 it is 1.25 with a forecast of 1.12.  Amateurs all around posing as players. 

Village-idiot's picture

The relation can be USD/CAD or it can be CAD/USD.

Tony is probably a Canadian, and most Canadians look at the trading pair the way he does.

Only an American thinks like an American. They are Ameri-centric (nothing exists outside of the USA)

Why don't you open your mind up to what's going in the world?


Magnum's picture

Catchy title but CAD is 126 today. It has been 135 for most of the last year. CAD strengthened to 124 really quickly a couple months ago now it’s “tumbled” to 126? You’re reaching, ZH.

FringeImaginigs's picture

Those stupid fucking traders. The expected YoY sales was 6.6% and it came in at 6.9%. Yes but but but the monthly sales were not quite expected. So the sky is falling, the sky is falling. Death to the Loonie. Just please fuck off.

buzzsaw99's picture

There will be growth in the spring.   [/Chaunce Gardner]

Scrot's picture

This American is building a house on the south shore of Nova Scotia so I need the loonie to weaken a great deal more. Ready for 1.50

HappyDeathMetal's picture

So what. We'll still kick all your asses in hockey.

RumbleGuts's picture

Each time interest rates rise, more money comes out of Canadians pockets that would have been put into the economy and into the Vampire Squid. (Mark Carney set it all up). We'll be haunted by the ghost of Jim Flaherty for a loooong time. (Flaherty was the Finance Minister who enabled the rock bottom interest rates and passed away a few yrs, ago) I've pounded the table about this for years and everybodies eyes glaze over when I speak about it...but their eyes are starting to slowly clear now.

We are soooooo fucked...  :P

Bemused Observer's picture

The Loonie...now why would you call your currency a 'Loonie'? Well, I guess it isn't as bad as the Vietnamese currency. And they have NO excuse...For years, we sent thousands and thousands of post-adolescent American boys over there, these folks had to know that 'Dong' was ill-advised as the name of the national currency.

King of Ruperts Land's picture

In the 1980s Canada launched a base metal coin into circulation and withdrew the $1 paper bill. The coin feature a picture of a bird common in Canuck land, called the Loon. The people "coined" the name the "Looney"

Later the $2 bill was replaced by a coin. It had polar bears, buy the people called it the twoney anyway.

They tried calling their money the "Queensy" but that was too confusing as all the coins and several bills featured her Majesty.

Bemused Observer's picture

Why not just call it the Canadian dollar?



It's very unimaginative, I know, but then imagination and creativity are not qualities we want in our money and finances. Banking used to be boring...dating a banker got you jokes about an austere, cloth coat lifestyle with a total nerd. Today, they're rock stars, and our money has 'cutesy' names.

GoinFawr's picture

Could just as easily written:

Loonie Tumbles And Canadian Exporters Dance in the Streets!

djealas's picture

The worst is yet to come.Trudeau is a true Socialist, who will not be content until the middle class is wiped off the map, so he can implement ridiculous basic income strategies, tax anyone who has a small business to death, impose a $15/hr minimum wage, create new "revenue" tools to wipe out personal savings, eliminate cash, and flood the country with useless mouths. Quebec is getting exactly what they deserve, with their psuedo Marxist government opening the flood gates to all the false refugees "fleeing" American persecution: wetbacks, dreamers, and Muslim backbenchers, until all they will have left is a waterlogged welfare state.

Our two biggest industries are building houses and cars. Our biggest employers are the federal/provincial governments. Canucks owe $1.70 for every buck they earn. Their number one investment strategy is their house. THe remaining largest businesses that haven't moved to Mexico are preparing to switch to robot work forces to avoid social welfare payments to Club Fed and the punitive minimum wage. So yeah, Canada is fucked. More gov=more poverty. Assholes. This country could be one of the best places in the world to live, if we just went Los Vegas on all our politicians.


AHHHH! That's better. I'm done.

GoinFawr's picture

"Trudeau is a true Socialist"

Oh please. if his Handsomeness is true anything it's a True Neoliberal, just like his treasonous father who handed Canadian monetary sovereignty over to private international banquing interests. And importing foreign workers in order to drive down labour prices is textbook globalist Neolib' corporatist shit, perp'd by any stripe of elected Canadian pol that's been bowing to the Queen since 1974. By definition "socialism" seeks to empower workers, not a handful of wealthy elite; anyone who tells you otherwise is selling something.

Do yourself a favour and invest in a decent dictionary, quit "pissing on my leg and telling me it's raining".

Speaking of which, here's what True-dough is all about:

http://watch.cbc.ca/this-hour-has-22-minutes/season-25/episode-4/38e815a... (skip to 3:15)

"Our two biggest industries are building houses and cars"

Maybe, if you parse and/or ignore Canada's natural resource extraction industries



CRM114's picture

Pretty boy is the same as Tony Blair - he's wanted power for so long for its own sake, and he has absolutely no idea what to do with it, nor is he capable of either working out what needs doing, or having the courage to do it.

Fortunately, unlike Blair, he's basically done nothing but photo-ops.