For the week of June 1 to 5
In Canada this morning, the RBC Canadian Manufacturing PMI will update for May following the release at 49.0 in April. The Bloomberg Nanos Confidence Index will update for the week ending May 29, where it is currently sitting at 56.9, its highest level since December 12, 2014. In the United States, Personal Income has increased by 0.4% in April, slightly beating the expected gain of 0.3% while Personal Spending remain unchanged, failing to meet forecasts calling for an increase of 0.2%. Later today, Construction Spending will update for April with forecasts calling for an increase of 0.8% following a drop of 0.6% in the previous update.
Focus throughout Canada this week falls on the update to employment data scheduled for Friday, June 5. The Unemployment Rate is expected to remain unchanged at 6.8% with Net Employment Increasing by 10K jobs, following a drop of 19.7K in the most recent update. In the U.S. highlights include updates to employment data and Factory Orders. Factory Orders are expected to fall by 0.1% in April after posting a gain of 2.1% in March. The Unemployment Rate is expected to remain at 5.4% with the Nonfarm Payrolls increasing by 228K.
In the currency markets, the Canadian dollar has fallen against its U.S. counterpart in trading this morning. Last week’s optimistic tone out of the Bank of Canada was focused on a strong U.S. outlook driving export growth throughout Canada. The price of oil continues to hover around $60 per barrel, falling to $59.75 this morning. The key risks to the CAD this week will come from the employment updates out of both Canada and the United States.
Todays expected range: 1.2450 – 1.2550
Posted by Concentra Financial Markets