Weekly Economic Update

For the week of October 19 to 23

118353675It is a quiet start to the week of economic data in Canada with only one release on the schedule. The Bloomberg Nanos Confidence Index will update for the week ending October 16, currently sitting at 56.0, its highest level since early July. There is also only one economic update south of the border as well. The NAHB Housing Market Index is expected to release at 62 for October, matching the index value from the previous release.

Focus in Canada this week falls on the Bank of Canada Rate Decision on Wednesday, followed by updates to Retail Sales and the CPI on Thursday and Friday. The Bank of Canada is expected to hold the current level of interest rates until the economy is able to show consistent growth. Retails Sales are expected to rise by 0.1% and the CPI is forecast to fall by 0.1% on a month-over-month basis after showing no change in the most recent update. Headlines in the United States include updates to Housing Starts, Building Permits, and Existing Home Sales. Housing Starts are expected to rebound with an increase of 1.9% in September after falling by 3.0% in the latest update while Building Permits are expected to fall by 0.4% in September.

In the currency markets, the Canadian dollar is struggling in early trading this morning with market uncertainty over today’s federal election. Domestic data is expected to be the key driver of the CAD this week. Along with the rate decision on Wednesday, there will also be a statement from the Bank of Canada and the quarterly Monetary Policy Report will be released. The key driver for Bank of Canada Governor Poloz and the Bank of Canada remains how closely inflation data is able to track the 2% target.

Todays expected range: 1.2898 – 1.2998

Source: Bloomberg

Posted by Concentra Financial Markets

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