Weekly Economic Update

For the week of November 2 to 6

471920189In Canada this morning, the RBC Canadian Manufacturing PMI will update for October after releasing at 48.6 in the most recent update. The Index is currently sitting at its lowest level on record, falling from 49.4 in August. In the United States the Markit US Manufacturing PMI will update for October with forecasts calling for the index to hold at 54.0. The ISM Manufacturing Index is expected to fall slightly from 50.2 to 50.0 while ISM Prices Paid is expected to rise from 38.0 to 39.8. Yields on the Government of Canada bonds continue to push higher following last week’s more hawkish than expected FOMC rate decision.

Focus in Canada this week will fall on the employment data scheduled to release on November 6. Employment is expected to gain by 10.0k jobs in October following a gain of 12.1k in the previous month. The Unemployment rate is expected to hold at 7.1%. Employment data will also be the focus throughout the United States with Nonfarm Payrolls expected to post a gain of 182k in October with the Unemployment Rate falling slightly from 5.1% to 5.0%.

In the currency markets, the Canadian dollar is showing weakness against the USD in early trading this morning as the price of oil has fallen to $45.84 per barrel. The short-term outlook for the CAD remains focused on fluctuations in oil and central bank policy. There are forecasts calling for the CAD to weaken further given the differences in tone between the Bank of Canada and the Federal Reserve.

Todays expected range: 1.3048 – 1.3148

Source: Bloomberg

Posted by Concentra Financial Markets

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