For the week of March 30 to April 3
In Canada this morning, the Industrial Product Price has increased by 1.8% on a month-over-month basis for February, beating expectations of 0.9%. The Raw Materials Price Index also increased by more than forecast with a gain of 6.1% in February. In the United States, Personal Income has increased by 0.4% for February while Personal Spending in up by 0.1%. Later today, Pending Homes Sales are expected to post an increase of 0.3% for February.
Focus this week throughout Canada falls on the update to GDP scheduled for tomorrow, March 31, 2015. On a month-over-month basis, GDP is expected to fall by 0.2% in January following a gain of 0.3% in the previous month. On a year-over-year basis, GDP is expected to post a gain of 2.4%. Headlines throughout the United States include updates to the Consumer Confidence Index and Employment data. The Confidence Index is expected to remain flat at 96.4 throughout March. Employment data will release on April 3, with forecasts calling for an increase of 245K jobs in March, with the Unemployment Rate remaining flat at 5.5%.
In the currency markets, the Canadian dollar has fallen in early trading against the USD. The price of oil is down slightly, trading below $49 per barrel, once again weighing on the CAD. The focus for CAD traders will fall on the GDP update scheduled to release tomorrow. Markets will keep a close eye on all key economic indicators as we approach the next Bank of Canada rate decision scheduled for April 15. At this time, it is not expected to see another rate cut at the April announcement.
Todays expected range: 1.2595 – 1.2695
Posted by Concentra Financial Markets