For the week of August 17 to 21
Canadian International Securities Transactions have released at 8.51B in June, well above economic forecasts calling for -6.00B. Foreigners sold $8.86B in Canadian bonds while buying $5.33B in Canadian stocks and $12.04B in money market paper. Later today, the Bloomberg Nanos Confidence Index will update for the week ending August 14. The Confidence index has fallen in six straight weekly releases leasing up to today, currently sitting at 52.0. In the United States, Empire Manufacturing has released at -14.92 for August, falling below forecasts calling for 4.50. Later this morning, the NAHB Housing Market Index is expected to rise from 60 to 61 for the month of August.
Focus throughout Canada this week falls on the update to Retail Sales and the Consumer Price Index scheduled to release August 21. Retail Sales are expected to climb by 0.2% in June while the CPI is expected to post a gain of 0.1%. Headlines throughout the United States include updates to Housing Starts and the CPI. Housing Starts are expected to rise by 0.8% in July while the CPI is forecast to increase by 0.2% on a month over month basis.
In the currency markets, the Canadian dollar is weak against the USD once again this morning as oil has fallen further, trading at $41.84 per barrel. Oil prices and potential decisions from the Bank of Canada continue to be the most important factors in Canadian dollar trading. With oil continuing to struggle, the Bank of Canada may be forced to take further action; however the next rate decision is not scheduled until September 9, with multiple key economic data points on the schedule before another rate decision.
Todays expected range: 1.3079 – 1.3179
Posted by Concentra Financial Markets