For the week of March 19 – 23.
Canadian manufacturing sales in January declined -1.0 percent month-over-month to $54.9 billion versus an estimated 0.9 percent decline. Excluding autos, sales declined 0.1 percent month-over-month to $47.5 billion, while motor vehicle manufacturing sales declined 8 percent. 14 of the 21 industries experienced declines.
For the second consecutive month, the Canadian economy experienced a net outflow of funds. In January, net outflow of funds registered at $7.6 billion, marking the first time since late 2015 that the economy experienced two consecutive months of outflows. Foreigners purchased $5.7 billion of Canadian securities, while Canadians purchased $13.3 billion in foreign securities.
US housing starts in February were below the expected 2.7 percent decline coming in at 7.0 percent to 1,236k. Single family starts rose to 902k, while multi-family starts declined to 334k. Building permits in February also declined more than expected, falling 5.7 percent to 1,298k, versus consensus expectations of a 4.1 percent decline to 1,320k.
There will be three key economic data releases for Canada this week: Wholesale trade sales (released tomorrow), and CPI and retail sales (released Friday). Releases for the US are schedule mid-week. Consensus is for the Fed to raise rates by 25 bps.
The Canadian dollar is trading flat to slightly higher against the US dollar since Friday’s market close. Today’s expected trading range for the Canadian dollar is 1.3021 – 1.3121.