Weekly Economic Update

For the week of July 4-7.

The amount of oil produced by members of OPEC countries moved in an undesirable direction for the month of June. Production levels reached their highest level of the year thus far, (260,000 barrels higher than they were seen in May) as countries such as Libya and Nigeria continued to ramp up their levels. Libya and Nigeria are currently exempt from the production cut agreement reached by the organization. Increases from these two countries made up half of the build, while Saudi Arabia bumped up production by approximately 90,000 barrels. Oil prices are currently down by .21 percent after rising for eight straight trading days.

Markets have also been disturbed after North Korea successfully tested an intercontinental ballistic missile over the weekend, landing in Japanese waters. Concern was amplified as experts determined the missile would likely have the capability of reaching Alaska.

Business sentiment levels appear to be on the rise as the Bank of Canada claims the measure is at its highest level since 2011.

Data releases expected out of Canada this week will include building permits and employment numbers. In the United States, releases are expected for ADP employment change, trade balance, non-farm payrolls, and the unemployment rate.

The Canadian dollar is currently trading up against the US dollar. Today’s expected range is 1.2927 – 1.3027.

Source: Bloomberg

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