Weekly Economic Update

For the week of June 15 to 19

471920189In Canada this morning, Manufacturing Sales have fallen by 2.1% in April, dropping by more than the expected decrease of 0.5% following a gain of 2.7% in the most recent update. The larger-than-expected drop was caused by lower sales in food, aerospace, and energy. Also on the schedule today, the Bloomberg Nanos Confidence Index will update for the week ending June 12 after falling to 56.3 in the latest update. In the United States, Empire Manufacturing has released at -1.98 for June, releasing below the expected level of 6.00. Later this morning, Industrial Production is expected to post a gain of 0.2% for May following a drop of 0.3% in the latest update.

Highlights throughout Canada this week include updates to the Consumer Price Index and Retail Sales. The CPI is expected to post a gain of 0.5% for May while Retail Sales are expected to climb by 0.7%, matching the increase from the previous month. Focus this week in the U.S. falls on Wednesday’s FOMC rate announcement as markets are looking for more details on the timing of the potential rate hike. The Consumer Price Index will update on Thursday with forecasts calling for a month over month gain of 0.5%.

In the currency markets, the Canadian dollar has fallen slightly against the USD in trading this morning. The key risk to the CAD this week comes with Wednesday’s FOMC announcement. Chair Yellen will discuss if the Fed is meeting its current inflation, labor, and confidence targets and will tie it all in to an update on the expected rate hike. At this point it is still unknown when the Fed plans to make their rate increase.

Todays expected range: 1.2305 – 1.2405

Source: Bloomberg

Posted by Concentra Financial Markets

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