For the week of October 5 to 9
In Canada this morning the Bloomberg Nanos Confidence Index will update for the week ending October 2, 2015. The Index jumped up last week from 53.2 to 54.4, currently sitting at its highest point since min-July. In the United States the Markit US Services PMI is forecast to remain at 55.6 for the September period. The ISM Non-Manufacturing Composite is expected to fall from 59.0 to 57.5.
Focus throughout Canada this week falls on updates to building permits, housing starts, and employment data. Building Permits are expected to rise by 0.3% in August while housing starts are expected to release at 202.5k, down from 216.9k in the previous month. The unemployment rate is forecast to tick down from 7.0% to 6.9% with a net gain in employment of 10.0k jobs. Headlines in the United States this week include updates to the trade balance and wholesale inventories. The trade balance is expected to decrease to -$48.00b from -$41.86b for the month of August. Wholesale inventories are expected to remain unchanged in August after falling by 0.1% in the most recent update.
In the currency markets, the Canadian dollar has continued to show strength this morning against the USD following a strong trading day on Friday with the weaker than expected employment data coming out of the United States. The price of oil is up slightly this morning, trading at $46.10 per barrel. Moving forward, central bank expectations will continue to be the key driver of the CAD with both the Bank of Canada and Federal Reserve scheduled to make a rate announcement later this month.
Todays expected range: 1.3057 – 1.3157
Posted by Concentra Financial Markets