Weekly Economic Update

For the week of October 13 to 16

There is only one release on the schedule throughout Canada this morning. The Bloomberg Nanos Confidence Index will update for the week ending October 9, looking to increase for the third straight week. The Confidence Index is currently sitting at 55.6, its highest level since early July. In the United States, the NFIB Small Business Optimism Index has updated for September, increasing from 95.9 to 96.1, beating forecasts calling for a drop to 95.5.

Headlines throughout Canada this week include updates to Manufacturing Sales and International Securities Transactions. Manufacturing Sales are expected to fall by 1.0% in August following a gain of 1.7% in the previous release. In the United States, focus falls on updates to Retail Sales and the Consumer Price Index. Retail Sales are expected to increase by 0.2% while the CPI is forecast to fall by 0.2% on a monthly basis. Both updates will be important considerations for the Federal Reserve as we approach the next rate announcement scheduled for later this month.

StatisticsIn the currency markets, the Canadian dollar is weak against the USD in trading this morning as the price of oil has fallen from $49.63 as of Friday’s close to $47.40 this morning. With the lack of significant economic data out of Canada this week, the CAD will be vulnerable to continued fluctuation in oil and developments out of the United States. The next Bank of Canada rate decision is scheduled for October 21st with current forecasts calling for no change to the O/N rate.

Todays expected range: 1.3001 – 1.3101

Source: Bloomberg

Posted by Concentra Financial Markets

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