For the week of August 22 to 26
U.S. Federal Reserve Vice Chairman Stanley Fisher delivered an upbeat assessment of policy targets this weekend. Fisher said core inflation was ‘within hailing distance’ of the 2% target while employment has increased since 2010, he also expects GDP growth to accelerate and business investments to increase. In Europe, RBS announced over the weekend that it would introduce charges on deposits for some corporate customers. This followed stories in the press on Friday that some Irish banks are doing the same and some German banks actively starting to introduce negative interest rates to larger deposit holders.
In Canada, it will be a light week for economic data, with only June wholesale trade sales data (0.7% vs. surveyed of 0.1%) released today. Last Friday, we saw the disappointing CPI (-0.2% vs. surveyed of 0.0%) and retail sales (-0.1% vs. surveyed of 0.5%) numbers.
In U.S., we saw July Chicago Fed Nat Activity Index (0.27 vs. surveyed of 0.20) today. New and existing home sales data releases on Tuesday and Wednesday, Markit PMI’s on Tuesday and Thursday, and durable goods orders on Thursday. At the end of the week on Friday, we have Federal Reserve Chair Janet Yellen’s speech at Jackson Hole and GDP data.
WTI crude oil prices closed at $48.52 per barrel, up slightly by 0.62 percent from last Friday’s close. It is currently trading at $47.36 per barrel and down an additional 2.39 percent. Iraq plans to boost exports by five percent, 150k barrel per day, after reaching an agreement to resume shipments from three oil fields. Exports were halted in March over payment dispute.
Canada is being driven by the weekend Fed comments this morning with CAD trading lower vs. USD, it is currently trading at 1.2919 against USD, down from yesterday’s close of 1.2871. Today’s expected range is between 1.2869 – 1.2969.
Posted by Concentra Financial Markets