For the week of July 20 to 24
In Canada this morning, Wholesale Trade Sales have fallen by 1.0%, failing to meet expectations of no change throughout the month of May. Decreased sales in motor vehicles headlined the drop in May. Later today, the Bloomberg Nanos Confidence Index will update for the week ending July 17, following a release of 56.1 in the latest update. The Confidence Index has been hovering above 56.0 since mid-April. It is quiet in the United States today without any data on the schedule.
Focus in Canada this week falls on the Retail Sales data scheduled for released on Thursday, July 23. Sales are expected to post a gain of 0.6% on a month-ove- month basis and 0.8% on a year-over-year basis for the month of May. Headlines in the U.S. include updates to Home Sales and the Leading Index. Existing Home Sales are expected to rise by 0.9% in June while New Home Sales are forecasted to fall by 0.1%. The Leading index is expected to post a gain of 0.2% after increasing by 0.7% in the most recent update.
In the currency markets, the Canadian dollar is down slightly against the USD this morning as the price of oil continues to hurt the CAD. Crude is trading below $51 once again and was a major factor is the Bank of Canada decision to cut interest rates. In a relatively light economic calendar for this week, the CAD will be vulnerable to the broad market tone and sentiment as it relates to the Federal Reserve’s interest rate decision scheduled for next week.
Todays expected range: 1.2934 – 1.3034
Posted by Concentra Financial Markets