Weekly Economic Update

For the week of October 31 to November 4

GDP grew by the fastest rate in a two year period, according to a release on Friday. Gross domestic product grew by 2.9 percent on 471920189 (2)an annualized, quarter-over-quarter basis for the third quarter, slightly higher than expectations for 2.6 percent. Growth was led by both stronger exports, as well as a build in inventory investments. Odds of a rate hike in the United States in 2016 jumped slightly on the release of these numbers, from 73 to 74 percent.

In Canada, August GDP data releases on Tuesday, along with the Fall Economic Statement. Also out this week will be employment data for October, September’s  International Merchandise Trade numbers, and Ivey Purchasing Managers data. Today, we have data for September Industrial Product Price MoM (0.4% vs. 0.4% surveyed) and Raw Materials Price Index MoM (-0.1% vs. 0.5% surveyed).

In the U.S., we have the FOMC rate decision on Wednesday. The Markit Manufacturing PMI, ISM Manufacturing, and construction spending data releases on Tuesday. October ADP employment change comes out on Wednesday, October Markit Services PMI, factory and durable orders on Thursday, and September Trade Balance and payrolls data releases on Friday. Today, we have data for September personal income (0.3% vs. 0.4% surveyed) and personal spending (0.5% vs. 0.4% surveyed). Later this morning, we have October Chicago Purchasing Manager and Dallas Federal Manufacture Activity data.

Crude oil prices sank after the OPEC ended a meeting on Friday without reaching a deal on individual members’ quotas. WTI crude oil prices closed at $48.70 per barrel last Friday, down by 2.1%. It is currently trading at $48.15 per barrel, down an additional 1.1%.

The Canadian currency is trading relatively flat vs. USD this morning at 1.3393, from yesterday’s close of 1.3398. Today’s expected range is between 1.3343 – 1.3443.

Source: Bloomberg

Posted by Concentra Financial Markets

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