For the week of January 12 to 16
It will be a quiet morning throughout Canada today without any significant data on the schedule. The Bloomberg Nanos Confidence Index will update for the week ending January 9 after releasing at 55.8 in the latest update. A value above 50 suggests net positive views on the economy. In the United States, the Labor Market Conditions will update for December following a release of 2.9 for November.
It will be a relatively low-key week in Canadian markets without any major economic data on the schedule. The next Bank of Canada rate Announcement in scheduled for next Wednesday, January 21. At this point, all signs leading up to the announcement point toward a neutral or negative tone. Highlights throughout the United States this week include an update to Retail Sales on Wednesday followed by Empire Manufacturing on Thursday and CPI on Friday. Retail Sales are forecasted to post a drop of 0.1% for December. Empire Manufacturing is expected to rise to 5.00 from -3.58 and the Consumer Price Index is expected to drop by 0.4% for December, following a decrease of 0.3% in the previous update.
In the currency markets, the USD has shown broad strength in early trading as markets are speculating on how the Federal Reserve will react to recent economic data with unemployment levels continuing to fall. The CAD struggles continue with the price of oil trading below $47 per barrel. Tomorrow, a speech from the Bank of Canada on the oil market could have a significant impact to CAD. In recent announcements, the Bank of Canada has stated that they were not concerned over the dip in oil but that tone could change now that prices have remained low throughout the start of 2015.
Todays expected range: 1.1855 – 1.1955
Posted by Concentra Financial Markets