Economic Update

For the week of June 29 to July 3

iStock_000020482237_LargeIn Canada this morning, the Industrial Product Price has increased by 0.5% on a month-over-month basis in May, beating the expected gain of 0.3% led by increases in Energy and Meat. The Raw Materials Price Index increased by 4.4%, releasing slightly below the expected level of 4.5%. In the United States, Pending Home Sales will update later this morning with forecasts calling for an increase of 1.3% on a month over month basis.

Focus this week throughout Canada falls on tomorrows update to GDP. GDP is expected to post a monthly gain of 0.1% for April and a year-over-year gain of 1.6%. Focus in the U.S. falls on updates to the Consumer Confidence Index, employment data, and ISM Manufacturing. Nonfarm payrolls are expected to increase by 230K jobs while the Unemployment Rate is expected to tick down slightly to 5.4%.

In the currency markets, the Canadian dollar is weak against the USD in trading this morning as focus falls on developments out of Greece, causing an overall risk averse tone. The price of oil as hit a new three-week low, trading below $59 per barrel. Overall, the markets are shifting to the USD in order to limit their exposure to the Euro.

Todays expected range: 1.2315 – 1.2415

Source: Bloomberg

Posted by Concentra Financial Markets

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