For the week of February 13-18
The Canadian economy continued to surprise economists in January by adding 48.3K positions, nearly 60K more than expected; however, the underlying details are not as strong as last month’s results. Full time employment was increased by 15.8K positions, while part-time positions increased by 32.4K. The unemployment rate in Canada dropped to 6.8% from 6.9% and the participation rate bumped up slightly to 65.9.Gains were led by an increase in demand for individuals in the business and financial services.
A monthly report released by the Energy Information Administration on Friday gave a bit more insight into the OPEC production cut and the oil market in general. According to the report, OPEC compliance to the most recent production cut is currently at approximately 90%, with Saudi Arabia cutting further than they had committed to. Another positive from this report was the indication of increasing demand, which will assist in closing the supply and demand gap. The International Energy Administration sees demand for oil increasing by 1.4 million barrels per day in 2017. Oil prices are currently down by 0.39%.
It will be an extremely quiet week for economic data in Canada with the only notable releases falling on Wednesday and Friday: manufacturing sales and international securities transactions respectively. The United States is expecting a busier week with data releases coming for PPI final demand, Empire manufacturing, consumer prices, retail sales, industrial production, and housing starts.
The Canadian dollar is trading more or less in line with the U.S. dollar this morning. Today’s expected range is 1.3049 – 1.3149.