For the week of February 22 to 26
Retail Sales data had a weak posting in Canada on Friday, missing expectations of a 0.9% decrease as sales declined by 2.2%. However, a stronger-than-expected consumer prices posting at least partly made up for this weakness. Decreasing oil prices on Friday were a continuation from weakness on Thursday caused in part by greater-than-expected oil supplies that were reported by the Department of Energy. With oil prices trading up around 3.58% to $30.70 per barrel this morning, the Canadian dollar is trading slightly up against its United States counterpart. Today’s expected range is 1.3673 – 1.3773.
Countries involved in producing oil agreed to finalize decisions on a production freeze by March 1. As of now, countries that are responsible for the production of approximately 75% of the world’s oil are supportive of this decision. This week, we are not expecting too much data from Canada. Finance Minister Bill Morneau will likely announce the date of the Canadian government’s first budget during an update given today. In the United States, data will be posted for GDP and Personal Spending toward the end of the week. GDP Annualized is expected to post at 0.4% on a quarter-over-quarter basis for the fourth quarter.
There is little economic data being released today. With nothing expected from Canada, the United States will see postings from the Chicago Fed National Activity Index and Markit US Manufacturing PMI. Chicago Fed National Activity Index for January is expected to fall to -0.10 after a posting of -0.22 in December. Markit US Manufacturing PMI is expected to post at 52.5 for February, just above its last posting of 52.4.
Posted by Concentra Financial Markets