For the week of July 24-28.
It will be a quiet week for data in Canada outside of two larger releases for wholesale trades and GDP. May GDP figures will be released on Friday and will be following growth postings of 0.2 and 3.3 percent on a month-over-month and year-over-year basis respectively for the month of April. In the United States, releases are expected for new home sales, wholesale inventories, quarterly GDP, and personal consumption. In addition to these US data releases, the Federal Reserve also has a policy meeting this week with the announcement expected on Wednesday.
Inflation figures released in June for Canada aligned with expectations, while retail sales releases exceeded expectations. Consumer prices released in June also aligned with expectations by falling by 0.1 percent on a month-over-month basis, while year-over-year growth fell short of expectations at 1.0 percent. Retail sales grew by 0.6 percent on a month-over-month basis in May. Expectations were calling for growth of only 0.3 percent for the month. However, once car sales were removed from the data, sales fell by 0.1 percent.
Oil prices are being affected as OPEC and non-OPEC members are not looking to deepen current cuts. Although further cuts seem to be off the table, there may a be discussion of capping the production of Libya and Nigeria. Both countries were exempt from the original production cut agreement, but have been growing production levels significantly since that time. Prices are currently up by 0.83 percent.
The Canadian dollar is trading relatively flat against the US dollar this morning. Today’s expected range is 1.2477 – 1.2577.