For the week of July 25 to 29

Governor Kuroda of the Bank of Japan once again confirmed the central bank is ready and willing to introduce additional stimulus into the Japanese economy. Kuroda went on to state what has become known as “helicopter money” would not be allowed, but mentioned the importance and effectiveness of a coordination of fiscal and monetary stimulus. The next policy meeting for the BOJ falls on July 29, and most economists are expecting additional stimulus to be announced.iStock_000079775461_Large

Inflation in Canada remained steady at 1.5 percent in June, according to data released on Friday by Statistics Canada, remaining slightly shy of the central bank’s two percent target. Excluding the price of gasoline, inflation sat at 1.9 percent. Another factor keeping inflation steady was muted growth of food prices, which slowed from 1.8 in May to 1.3 percent in June. Retail sales data was also released for Canada on Friday, and showed growth of 0.2 percent in May.

Data out of the United States this week will include GDP, as well as economic information from Wednesday’s FOMC meeting. As of now, the market is not expecting a hike and is pricing in a 10 percent chance at this meeting, while the chance of a rate cut sits at zero percent. In Canada, data will be released for GDP on Friday.

According to a report by Baker Hughes, oil rigs in the United States have increased for the fourth week in a row to 371. As these rigs bring more supply into the market, the price of oil is expected to continue lower. After falling by 1.3 percent throughout Friday, oil prices are currently down by 1.18 percent to $43.67 per barrel. The Canadian dollar is weakening against the US dollar, along with oil. Today’s expected range is $1.3146 – $1.3246.

Source: Bloomberg

Posted by Concentra Financial Markets


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