For the week of April 13 to 17
It is a quiet start to the week in Canada with only one release on the economic calendar today. The Bloomberg Nanos Confidence Index will update for the week ending April 10, 2015. The index has hovered near 55.0 throughout the first few months of 2015, which is where it currently sits. In the United States, the Monthly Budget Statement is expected to release at -$43.8B for March, down from -$36.9B in the previous release.
There are multiple key data pieces on the schedule in Canada this week including updates to the CPI, Retails Sales, and the Bank of Canada rate announcement. The CPI is expected to post an increase of 0.5% for March, while Retails Sales are also expected to gain by 0.5%. So far, all economic forecasts are calling for the Bank of Canada to hold the overnight rate at 0.75%; however markets are still mixed on whether there will be another rate cut later this year. Headlines throughout the United States include updates to Retail Sales, Housing Starts and the Consumer Price Index. Retail Sales are expected to increase by 0.7% and the CPI is forecasted to post a gain of 0.3% in March.
In the currency markets, the Canadian dollar is struggling in early trading this morning as the USD as shown broad strength against a majority of its trading counterparts. The price of oil is up slightly this morning, trading close to $52.50 per barrel. Governor Poloz recently referred to first quarter growth as “atrocious” which leads markets to believe that the tone at this week’s rate announcement will not be very positive.
Todays expected range: 1.2557 – 1.2657
Posted by Concentra Financial Markets