For the week of April 11 to 15
Iraq has boosted its oil production to a record level throughout the month of March. Production was increased from 4.46 million barrels per day to 4.55 million barrels per day. This increase comes days before OPEC and non-OPEC members are scheduled to meet in Doha to discuss a potential oil production freeze. Oil prices saw a rally last week, including a 6.6 percent increase on Friday on news of declining oil inventories in the United States and hope of a production freeze. In addition, the number of active rigs in the United States has fallen to the lowest level since 2009. Oil prices are down slightly this morning, but the Canadian dollar is taking little notice and is trading slightly up against its US counterpart this morning. Todays expected range is 1.2905 – 1.3005.
China’s consumer prices numbers suggest that China may be able to stall any potential further easing by the central bank. Consumer prices posted growth of 2.3 percent year-over-year in March, slightly lower than the expected 2.4 percent growth. This consumer price number was helped by a 7.6 percent increase in food prices.
Coming up in the United States this week are postings from Retail Sales, Consumer Prices, and Industrial Production. Retail Sales will be looking to post its first increase in 2016. The Fed will also be releasing its Beige Book on Wednesday. President Obama and Fed Chair Yellen will be meeting today to discuss the state of the economy as well as Wall Street reform. Earnings season kicks off this week, but doesn’t really ramp up until Wednesday with only one company reporting earnings today.
In Canada this week, the Bank of Canada holds its rate decision meeting on Wednesday. Although any rate movement is unlikely, the market will be provided with updated economic projections. After GDP’s surprise 0.6 percent gain for January this could be an interesting update. Another new piece of information that will be included in this economic projection will be the Federal budget. The provinces of Alberta as well as Newfoundland and Labrador will be announcing their provincial budgets on the 14th.
Posted by Concentra Financial Markets