Weekly Economic Update

For Week of July 6 – 10, 2015

In Canada this morning, the Bloomberg Nanos Confidence Index will update for the week ending July 3rd after releasing at 56.8 in the most recent announcement. The Confidence Index has been hovering above 56.0 since mid-April. In the United States, the ISM Non-Manufacturing Composite is forecasted to release at 56.4 in June, rising from 55.7 in the previous release.

Focus throughout Canada this week falls on the updates to Building Permits, Housing Starts, and Employment data. Building Permits are expected to fall by 5.0% in May while Housing Starts are expected to post a month over month gain of 0.1%. The Unemployment Rate is expected to increase slightly to 6.9% with a net loss of 10.0K jobs. Headlines in the United States this week include updates to the Trade Balance, and Wholesale Inventories. The Trade Balance is expected to release at -$42.75B for May following a release of -$40.90B in the previous update while Wholesale Inventories are expected to rise by 0.3%.

The Canadian dollar is weak in trading this morning as investors shift towards the safety of the USD following the “No” vote in Greece’s referendum. Also weighing on the CAD, oil prices have fallen below $55 per barrel this morning with a drop of 4.0%. Looking ahead, markets are have now partially priced in expectations of another rate cut from the Bank of Canada which could happen as early as this month, caused by the negative GDP release last week and the continued weakness in oil.

Todays expected range: 1.2603 – 1.2703

Source: Bloomberg

Posted by Concentra Financial Markets

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