Weekly Economic Update

For the week of August 24 to 28

471920189In Canada this morning, the Bloomberg Nanos Confidence Index will update for the week ending August 21, 2015. The Index increased for the first time in six weeks in the most recent update, currently sitting at 52.3. In the United States, the Chicago Fed National Activity Index has released at 0.34 for July, above expectations of 0.20.

Focus throughout Canada this week falls on the update to Industrial Product Price, scheduled to release July data on August 28. The Industrial Product Price is expected to show no change, following an increase of 0.5% in the most recent update. Headlines in the United States include updates to New Home Sales, GDP, and Personal Income. New Home Sales are expected to rise by 5.8% in July after falling by 6.8% in the previous update while GDP is forecast to post an annualized gain of 3.2% for the second quarter. Personal Income is also expected to increase with a projected gain of 0.4% for July, matching the jump from the previous month.

In the currency markets, the CAD is weak against its U.S. counterpart in trading this morning based on weakness in global markets, falling oil prices, and softer Bank of Canada expectations. The price of oil is now trading below $40, currently sitting at $38.90 per barrel which hurts growth projections for the Bank of Canada. Concerns over developments in China have some investors expecting the Federal Reserve to delay a rate hike even further, possibly pushed into 2016.

Todays expected range: 1.3207 – 1.3307

Source: Bloomberg

Posted by Concentra Financial Markets

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