Weekly Economic Update

For the week of May 22 – 26.

It will be a slow week for data in Canada outside of the Bank of Canada’s May 24 rate announcement; the only notable release will be coming from wholesale trades and the CFIB business barometer. As of today the market interest rate sits very low at 2 percent. Despite little chance of movement, investors will be keen to hear members discuss their view of the Canadian economy. Releases out of the United States this week will consist of manufacturing PMI, new home sales, existing home sales, wholesale inventories, GDP, durable goods orders, and University of Michigan Sentiment.

As of this morning, oil is down by approximately 0.12 percent. As investors are eagerly awaiting Thursday’s OPEC meeting in Vienna, a failure to reach an agreement on an extension will follow a substantial fall in oil prices later this week. There has been further detail on the proposed cut extension. Countries such as Saudi Arabia, Russia, Iraq, and Mexico have confirmed that they would back a nine month extension.

Wholesale trade sales in Canada surpassed expectations in March, growing by 0.9 percent on a month-over-month-over-month basis instead of the expected 0.8 percent. In addition to expected growth for March, February’s growth was revised from -0.2 percent upward to 0.3 percent. Sales increased by 0.6 percent in volume terms. Inventories were down by 0.3 percent.

Today’s expected range is 1.3416 – 1.3516.

Source: Bloomberg

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