Weekly Economic Update

For the week of January 25 to 29

It will be a very quiet day for data in both Canada and the United States with only one release expected for each. In Canada, the Bloomberg Nanos Confidence for the week of January 22 is expected to release after last week’s posting of 53.0. On Friday, Retail Sales posted a growth of 1.7% on a month-over-month basis. Consumer Prices fell by 0.5% for the month of December and rose by 1.6% on a year-over-year basis. In the United States, Dallas Fed Manufacturing Outlook Level of General Business Activity is expected to release at -14.0 for the month of January, an increase from December’s posting of -20.1.

It is going to be a relatively slow week for Canada with postings for GDP, Industrial Product Price, and RBC Canadian Manufacturing PMI expected. GDP for November is expected to post a gain of 0.3% on a month-over-month basis after falling flat at 0.0% growth for the month of October. Industrial Product Price for December is expected to decline by 0.3% which is slightly lower than November’s decline of 0.2%. RBC Canadian Manufacturing PMI will be posting later this week for January, following December’s posting of 47.5. In the United States, the Fed will be making a rate decision on Wednesday. No change is expected from this decision after increasing the interest rate for the first time in 11 years at the last meeting. Other data from the United States this week includes Consumer Confidence Index, New Home Sales, Durable Goods Orders, GDP Annualized QoQ, Chicago Purchasing Manager, U. of Mich. Sentiment, Personal Income/Spending, and ISM Manufacturing.

In the currency markets, the Canadian dollar is giving up some ground this morning against its United States counterpart. This follows a great week for both the Canadian dollar and oil prices. Oil saw the largest increase in two days that it has in seven years on Thursday and Friday of last week, but is currently down 2.52% to $31.38 per barrel early this morning. Oil prices will likely be affected by the tone of the FOMC meeting mid-week.

Todays expected range: 1.4128 – 1.4228

Source: Bloomberg

Posted by Concentra Financial Markets

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