For the week of December 8 to 12
Housing Starts throughout Canada are forecast to increase by 195.0K for November, more than the gain of 183.6K in the previous month. Building Permits are expected to show a gain of 3.9% for October. We have seen volatility in Building Permits lately, falling by 27.3% in the August report before rebounding with a gain of 12.7% in September. It is quiet throughout the United States today without any major data on the schedule.
Focus throughout the Canadian markets this week falls on the New Housing Price Index, scheduled to update again on Thursday. The index is expected to show a slight gain of 0.1% for October following a gain of 0.1% in the previous period as well. It will be a fairly light week in Canada without any other major data scheduled to release.
Headlines in the United States this week include updates to the Monthly Budget Statement, Retail Sales and the Producer Price Index. The Budget Statement is forecast to show a deficit of $65.0B for November, compared to the release last month of $135.2B. Retail Sales are expected to rise for the ninth time in the last ten months with a gain of 0.4% MoM for October. The Producer Price Index is expected to drop by 0.1% after an increase of 0.2% in the latest release.
In the currency markets, the Canadian dollar is unchanged in early trading leading up to today’s economic data after struggling throughout the day on Friday following weak employment data out of Canada combined with strong figures out of the U.S. Oil continues to struggle, now trading below $65 per barrel. The broad U.S. strength combined with the CAD struggles has brought the Canadian dollar to a new 5-year low against its U.S. counterpart. With the low amount of Canadian data on the schedule this week, the CAD will be left vulnerable to releases out of the United States once again.
Todays expected range: 1.1396 – 1.1496
Posted by Concentra Financial Markets