Weekly Economic Update

For the week of August 10 to 14

It’s a quiet day in Canada with only the Bloomberg Nanos Confidence Index set to be released for the week ending August 7, following a release of 52.3 in the latest update. The index, which poses questions related to personal finances, job security, economic strength and real estate values to 1,000 Canadians, has been steadily worsening over 2015. South of the border, the Labor Market Conditions Index for the month of July will be released as well as second quarter numbers for mortgage foreclosures and delinquencies.

57570849Focus this week in Canada falls on July Housing Starts, expected at 195.0K, down from June’s revised 203.1K. Closing the week off we will see an update to Manufacturing Sales in June expected significantly higher than the previous month’s 0.1% advance. Out of the U.S., Wholesale Inventories for June are expected at 0.4% (down from May’s 0.8% release) on Tuesday as well as Mortgage Applications for the week of August 7. On Thursday, Retail sales for July will be released, expecting to pick up 0.6% over the month after a 0.3% decline in June. Closing out the week, the Producer Prices Index is expected at 0.1% for July and the Industrial Production and Capacity Utilization are expected to remain relatively unchanged at 0.3% and 78.0%, respectively.

In the currency markets, the Loonie remains relatively unchanged against its USD counterpart. With a quiet economic schedule across Canada this week, oil prices and policy expectations out of the US set to be released on Wednesday through the Monthly Budget Statement will be the key drivers of any significant CAD movement.

Today’s expected Range: 1.3100-1.3200

Source: Bloomberg

Posted by Concentra Financial Markets

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