For the week of February 2 to 6
The RBC Canadian Manufacturing PMI is set to update for January this morning after releasing at 53.9 in the latest update. Also on the schedule, the Bloomberg Nanos Confidence Index will update for the week ending January 30, 2015 after falling slightly to 56.5 in the latest update. The Index has been hovering around 56 throughout the first month of 2015. In the United States, Personal Income is expected to show an increase of 0.2% for December, following a gain of 0.4% in the most recent update. Personal Spending is forecast to drop by 0.2% for December after increasing by 0.6% in November. Later this morning, ISM Manufacturing is expected to fall slightly to 54.5 for January, down from 55.1 in December.
Headlines throughout Canada this week include updates to Building Permits and Employment data with both releases scheduled for Friday, February 6. Building Permits are expected to post a gain of 5.0% for December after falling by 13.8% in November. The Unemployment rate is expected to remain at the revised level of 6.7% for January with the Net Change in Employment posting a slight gain of 5.5K. Focus throughout the United States this week falls on the update to Employment scheduled for Friday. Nonfarm payrolls are expected to increase by 232K for January with the Unemployment Rate remaining at 5.6%.
In the currency markets, the Canadian dollar has posted a gain against the USD in early trading this morning partially recovering some of the losses from the previous week. Oil prices have increased, rising from below $45 dollars per barrel to above $48. Throughout January, the CAD was the worst performing currency as oil prices weighed on the economy. With oil prices showing signs of strength, the risk of a second rate cut in March may decrease as the economy stabilizes. In a busy week of economic data, focus will fall on the update to employment out of both Canada and the United States on Friday.
Todays expected range: 1.2630 – 1.2730
Source: Bloomberg
Posted by Concentra Financial Markets
