Weekly Economic Update

For the week of June 13 to 17

Sea walk at the Kitsilano Beach Park at Downtown of Vancouver, CThe value of the Pound continues to drop as the Brexit vote edges closer and polls have shown up to a ten percent lead for the “leave” side. However, poll results have evened out since Friday. Coming up this week are central bank policy meetings for both the Fed and the Bank of Japan. As of now, economists expect both central banks to remain on hold at this week’s meetings, with odds of an interest rate hike in the United States not breaking the 50 percent mark until December’s meeting.

Canada’s employment data for the month of May came out better than expected on Friday. The country added 13,800 jobs while expectations were only calling for 1,800. This increase contributed to the unemployment rate in the country dropping from 7.1 percent to 6.9 percent (this is the lowest unemployment rate has been in nearly a year). When inspecting the details of this report, full-time positions grew by 60,500 while part-time jobs fell by 46,800 positions.

Oil prices have been falling as data out of the United States showed an increase in the amount of active rigs (up 3 to 328) as well as news that Iran is looking to raise their production levels over the coming years. Price continues on their downward path and are currently down by 1.24 percent to $48.46 per barrel. The Canadian dollar is trading relatively flat against the U.S. dollar this morning. Todays expected range is 1.2737 – 1.2837.

Upcoming data this week for Canada includes Manufacturing Sales on Wednesday and Consumer Prices on Friday. In the United States, releases are expected for Retail Sales, Empire Manufacturing, Consumer Prices, and Housing Starts.

Source: Bloomberg

Posted by Concentra Financial Markets

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