For the week of September 8 – 12, 2014
In Canada this morning, Building Permits have increased by 11.8% on a month over month basis for July, beating economic expectations calling for a drop of 5.0%. The unexpected jump brought building permits to a record in July which was led by condos and apartments in Toronto and Vancouver. The previous months Building Permits have been revised upwards to show a gain of 16.4%. Later this morning, the Bloomberg Nanos Confidence Index will update for the period ending September 5, 2014 after releasing at 59.0 in the most recent update. South of the border, Consumer Credit is forecast to release at $17.275B in July after releasing at $17.255B in the previous month.
Focus this week throughout Canada falls on updates to Housing Starts for August and the New Housing Price Index for July. Housing Starts are expected to release at 195.0K for August, slightly below the amount from the previous release of 200.1K. The New Housing Price Index is forecast to rise by 0.2% for July, matching the gain in the previous month. It should a bit more of a quiet week compared to last which included the Bank of Canada Rate Announcement and Employment Data, two of the most important updates in the Canadian economy.
Throughout the United States this week, updates will be made to Wholesale Inventories, the Monthly Budget Statement, Retail Sales, and the University of Michigan Confidence Index. Wholesale Inventories are forecast to increase by 0.5% throughout July, following a gain of 0.3% in the previous update. Focus will fall on the August Retail Sales data scheduled to release on Friday with economic forecasts calling for a gain of 0.6% following no change in the latest update. All data out of the U.S will be important as we approach the next FOMC Rate Decision scheduled for Wednesday, September 17th.
In the currency markets, the Canadian dollar has fallen against its U.S. counterpart in early trading this morning as oil prices continue to fall. The Building Permits data from this morning was not expected to impact the CAD, despite the strong release. With a fairly quiet week of domestic data on the schedule, the CAD will be left vulnerable to broader market movement and activity. Investors will be sure to keep an eye on data out of the United States as we approach the next FOMC Rate Decision. An aggressive tone from the Federal Reserve at the next announcement would likely push the USD even further ahead of the Canadian dollar.
Todays expected range: 1.0862 – 1.0962
Posted by Concentra Financial Markets