For the week of July 4 to 8
Mark Carney, Bank of England Governor, has expressed the opinion that the Bank of England will likely need a stimulus boost at some point this summer due to a “deteriorating economic outlook”. The BoE is expected to release an assessment of the current Brexit situation on July 14. Markets currently expect a lowering of interest rates as well as the potential for increasing the current bond buying program. The European Union saw their credit rating cut by S&P on Thursday, from AA+ to AA with a stable outlook due to a lowering of cohesion in the union.
A continued threat posed by militants in Nigeria is causing concern regarding the supply of oil and is assisting in the rise of oil prices. Oil is currently up by 0.37 percent to $49.17 per barrel. The Canadian dollar appreciated against the U.S. dollar by approximately 0.7 percent through last week after taking a hit immediately following the Brexit decision. The Canadian dollar strength is continuing this morning as energy prices continue to rise. Todays expected range is 1.2808 – 1.2908.
Coming up this week, in addition to Fed minutes which will be released on Wednesday, data out of the United States includes Durable Goods Orders, Trade Balance, and Nonfarm Payrolls. There is no data out of the United States today as markets are closed for the Independence Day holiday. In Canada, data is expected this week for Building Permits and Employment.
Posted by Concentra Financial Markets