Weekly Economic Update

For the week of February 8 to 12

It is going to be a quiet day in both Canada and the United States today with little expected data from either. In Canada, Building Permits for the month of December are expected to increase by 6.2% after decreasing by 19.6% in November. Last week, the Net Change in Employment showed a decrease of 5.7k, missing expectations of an increase of 5.5k. In addition, the unemployment rate in Canada rose to 7.2%. In the United States, Labor Market Conditions Index is expected to post at 2.5 for the month of January, falling from 2.9 in December. Last week in the United States Nonfarm Payrolls increased by 151k, and the unemployment rate dropped to 4.9%.

CONCE_000007816956_HiRes_RGBIt is going to be a very slow week for Canada on the data front with the only notable releases being today’s Building Permits and Thursday’s posting for the New Housing Price Index. On a month-over-month basis, the New Housing Price Index for December is expected to increase by 0.2% as it did in November. In the United States this week, Wholesale Inventories for December are expected to fall by 0.1% after falling by 0.3% in November’s posting. Initial Jobless Claims and Continuing Claims will be released on Thursday. The Import Price Index for January is expected to fall by 1.5% month-over-month after falling by 1.2% in December. Retail Sales Advance for January is expected to grow by 0.1% after falling by the same in December. University of Michigan Sentiment for February is also expected to post at the end of this week after January’s posting of 92.0.

In the currency markets, the Canadian dollar is trading down against its United States counterpart early this morning following a volatile week of trading last week. The price of oil is down approximately 3.43% this morning to $29.83 per barrel. With little data expected out of Canada for the remainder of the week, both the price of oil and data releases out of United States are expected to be the main drivers for any changes in the exchange rate.

Todays expected range: 1.3912 – 1.4012

Source: Bloomberg

Posted by Concentra Financial Markets

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