• Headline Retail Sales rose 3.2% MoM in January, above the expected 2.4%. 
• The loonie didn't react to the backward-looking data, with focus now much more on how the Russo-Ukraine war will impact things going forward. 

Headline Canadian Retail Sales rose at a pace of 3.2% MoM in January, much stronger than the expected 2.4% gain, marking a strong rebound from December's Omicron Covid-19 variant induced drop of 1.8% MoM, data released by Statistics Canada showed on Friday. Retail Sales excluding autos also saw stronger than expected growth of 2.5% MoM versus expectations for 2.4% growth. That came after a 2.5% decline in December. 

Market Reaction

The loonie has not reacted to the latest data release at all. It's not a surprise that Retail Sales rebounded strongly as Covid-19 infection rates/fears eased in Canada in January and focus is now much more on how the Russo-Ukraine war, which began in late February, will impact the global (and Canadian) economy going forward.