Weekly Economic Update

For the week of July 17 to 21.

Data expected out of Canada this week will be centered on Friday, with the release of consumer prices for the month of June and retail sales for May. Consumer prices grew by 0.0 percent on a month-over-month basis and 1.1 percent on a year-over-year basis. Retail sales grew by 0.3 percent. Releases will also be occurring for international security transactions and manufacturing sales. Releases in the United States this week will occur for empire manufacturing, housing starts, and building permits.

According to last Friday’s release, inflation growth is slowing down, indicating that consumer prices did not grow from May’s level. This slow-down is likely to be an important topic of discussion for the Federal Reserve, who is looking to continue to raise interest rates in the United States. The Federal Reserve is expected to remain on hold for some time, with at least a 50 percent implied of an interest rate hike not occurring until March of 2018.

The Canadian dollar continued to see strength on Friday by improved oil prices and the recent interest rate hike by the Bank of Canada. The currency crossed the level of CAD/USD .7900 on Friday for the first time in more than a year. The Canadian dollar is currently trading slightly down against the US dollar this morning.

Economic growth surpassed expectations in China for the second quarter of 2017. GDP levels grew by 6.9 percent, higher than the economists’ expectations of 6.8 percent.

Source: Bloomberg

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