For the week of March 23 to 27
In Canada this morning the Bloomberg Nanos Confidence Index will update for the week ending March 20, 2015. The Index has increased in two straight weeks leading up to today’s announcement, currently siting at 54.6. In the United States, the Chicago Fed National Activity Index has updated for February, releasing below expectations at -0.11 compared to forecasts calling for 0.10. A reading below 0 in the measure indicates below-trend growth throughout the economy. Later today, Existing Home Sales are expected to release at 4.90M for February, a month-over-month gain of 1.7% following a drop of 4.9% in the most recent update.
It is a very quiet week on the economic calendar throughout Canada without any other scheduled economic releases. Focus will shift to data out of the United States. In the U.S. headlines include updates to the Consumer Price Index, Durable Goods Orders, and GDP. The CPI is expected to rise by 0.2% for February with a drop of 0.1% on a year-over-year basis. GDP is scheduled to update on Friday, March 27 with forecasts calling for an annualized rate of 2.4% for the fourth quarter.
In the FX markets, the Canadian dollar is showing slight strength against its U.S counterpart in early trading this morning. With the lack of economic data on the Canadian schedule for the remainder of the week, focus will fall on the updates out of the United States and fluctuations in the price of oil. Crude is now trading just below $46 per barrel. Currently the market is pricing in another rate cut from the Bank of Canada with expectations to see a drop over the next 12 months. Governor Poloz is set to deliver a speech on Thursday which could spark a shift in currency markets depending on the tone of the announcement.
Todays expected range: 1.2430 – 1.2530
Posted by Concentra Financial Markets