07:24 AM EDT, 09/20/2024 (MT Newswires) -- Canada will release the July retail sales at 8:30 a.m. ET on Friday, noted Bank of Montreal (BMO).

The expected 0.6% month-over-month bounceback -- in line with Statistics Canada's preliminary estimate -- would mark just the second month of growth in the year, said the bank. The headline growth rate will be flattered by higher gasoline prices and a rebound in auto sales from the June cyberattack, while a rise in goods prices suggests retail volumes could be softer.

It will likely take additional rate cuts from the Bank of Canada to drive a meaningful recovery in consumer spending, according to BMO.

At the same time Friday, investors will get August producer prices. The bank is expecting continued downward pressure on this front, highlighting the need for policymakers to focus increasingly on the growth and labor market figures to determine downside risks to the inflation outlook.

The Canadian dollar (CAD or loonie) is a touch weaker (0.1%) ahead of an appearance by BoC Governor Tiff Macklem at the NBER's "Economics of AI" conference later Friday, stated BMO. Remarks will be published at 8:15 a.m. ET, with the speech scheduled to start at 8:30 a.m. ET. There will be an audience question-and-answer session but no media availability for the event.