For week of November 9 to 13, 2015
It will be a quiet start to the week throughout North America. In Canada, Housing Starts are expected to release at 200.0k for October, down from a revised value of 231.6k in the previous release while in the U.S. the Labor Market Conditions Index is expected to rise from 0.0 to 0.9. Last week’s employment data released at stronger than expected levels out of both Canada and the United States leading to rates on fixed income securities to jump as speculation around a Federal Reserve rate hike increased. The market is now pricing in a 70% chance that the Fed will raise interest rates at the December announcement.
With a holiday shortened week, the schedule of economic data is fairly quiet in Canada, focus falls on today’s Housing Starts data and Thursday’s update to the New Housing Pricing Index. Headlines in the United States include updates to Wholesale Inventories, Retail Sales and the PPI. Retail Sales are expected to post a monthly gain of 0.3% in October after increasing by 0.1% in the latest update while the PPI is forecasted to gain by 0.2%.
In the currency markets, the Canadian dollar has posted early gains against the USD as the price of oil has recovered slightly, increasing to $44.90 per barrel this morning. In a relatively quiet week, focus will remain on the price of oil as well as broad market developments. Investors will be looking for anything that could impact the decision making of either the Federal Reserve or the Bank of Canada.
Todays expected range: 1.3198 – 1.3298
Posted by Concentra Financial Markets