For the week of September 8 to 11
In Canada this morning, the Bloomberg Nanos Confidence Index will update for the week ending September 4. The Index has increased in the two most recent updates, currently sitting at 53.7. In the United States, the NFIB Small Business Optimism Index has increased from 95.4 to 95.9 in August. Later this morning, the Labor Market Conditions Index is expected to rise from 1.1 to 1.6.
The focus throughout Canada this week falls on updates to Housing Starts and the Bank of Canada Rate Announcement scheduled for tomorrow, September 9. Housing Starts are expected to release at 190.5K for August, down slightly from 193.0K in the previous month. Economists are expecting Bank of Canada Governor Poloz to hold rates at the current level of 0.50%. Focus in the United States falls on the update to the Producers Price Index, expected to post a decrease of 0.1% in August, following a gain of 0.2% in the latest update.
In the currency markets, the Canadian dollar has shown strength against the USD in early trading today as we approach tomorrows BoC announcement. The price of oil is currently trading at $45.57 per barrel, falling by 1.00% this morning. Moving forward, following tomorrows announcement, risk will shift the Federal Reserve announcement scheduled for next week. Markets are mixed on whether the Fed will announce a rate hike.
Todays expected range: 1.3170 – 1.3270
Posted by Concentra Financial Markets