Weekly Economic Update

For the week of November 16 to 20

118353675In Canada this morning, Manufacturing Sales are expected to post a gain of 0.2% in September following a drop of 0.2% in the most recent update. Later this morning the Bloomberg Nanos Confidence Index will update for the week ending November 13. The index is currently sitting at 58.3, its highest level since October 2014. In the United States, Empire Manufacturing is expected to release at -6.50 for November after releasing at -11.36 in the latest update. Last Friday’s update to Retail Sales released below economic forecasts, causing fixed income yields to drop with the chances of a rate hike in December taking a hit.

Headlines throughout Canada this week include updates to the Retail Sales and the Consumer Price Index, both scheduled to release on Friday. Retail Sales are expected to increase by 0.1% in September following a gain of 0.5%. The CPI is forecast to post an increase of 0.1% for October after falling by 0.2%. Focus in the United States will shift to tomorrows update to CPI which is expected to post a monthly gain of 0.2% followed by Wednesday’s update to Housing Starts with expectations to see a drop of 3.8% in October.

In the currency market, the Canadian dollar is slightly stronger against the USD in trading this morning. Focus remains on the price of oil and central bank policy in both Canada and the United States. Oil is currently trading at $41.82 per barrel this morning, gaining from $40.74 since Friday’s close. There are significant data releases scheduled for this week which could impact the approach of the Bank of Canada and the Federal Reserve ahead of the December rate announcements.

Todays expected range: 1.3268 – 1.3368

Source: Bloomberg

Posted by Concentra Financial Markets

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