Weekly Economic Update

For the week of December 7 to 11

StatisticsIn Canada this morning, the Bloomberg Nanos Confidence Index will update for the week ending December 4. The Index is currently sitting at its lowest level since October 16, 2015. Friday’s employment data released lower than expected with a drop of 35.7k, compared to forecasts of only 10.0k while the unemployment rate unexpectedly ticked up to 7.1%. Employment in the U.S exceeded expectations on Friday, climbing by 211k for November, strengthening the case for a rate hike before the end of the year. Today in the United States, Consumer Credit is forecast to release at $19.000b for October after releasing at $28.918b in September.

Focus throughout Canada this week falls on the Housing Starts and Building Permits data scheduled to release tomorrow morning. Housing Starts are expected to release at 200.0k in November while Building Permits are forecast to post a gain of 3.2% for the month of October. This week’s headlines in the U.S. include updates to Wholesale Inventories and Retails Sales. Inventories are expected to rise by 0.1% while Retail Sales are expected to increase by 0.3%.

In the currency markets, the Canadian dollar is continuing to struggle against the USD in trading this morning. The weakness in the CAD is due to a variety of reasons including disappointing labour market data last week, falling oil prices caused by an announcement of increased production at the most recent OPEC meeting, and relative strength in the U.S. economy. The price of oil has fallen to $39.10 per barrel this morning, its lowest level since August of this year.

Todays expected range: 1.3414 – 1.3514

Source: Bloomberg

Posted by Concentra Financial Markets

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