Weekly Economic Update

For the week of June 18 – 22.

Foreigners bought a net $9.13 billion of Canadian securities in April compared to $6.40 billion in March. $8.79 billion were bonds, and $2.41 billion were Canadian stocks and investment shares. Foreigners divested $2.07 billion of Canadian money market paper, while Canadians sold $0.65 billion of foreign securities in April.

Canadian manufacturing sales unexpectedly declined by 1.3 percent month-over-month to $56.2 billion in April after increasing 1.4 percent in March. Excluding autos, sales decreased to 1.7 percent, while motor vehicle manufacturing increased to 3.5 percent.  The partial maintenance shutdowns at Canadian refineries were one of the main contributing factors of the decline. 10 out of the 21 industries decreased in sales. On a year-over-year basis, manufacturing sales were up 3.6 percent.

Canadian existing home sales declined 0.1 percent month-over-month, versus expectations of 1.7 percent. Existing home sales in Toronto increased by 1.6 percent month-over-month, but decreased in Vancouver by 0.2 percent month-over-month. The average home price in Canada rose 0.9 percent month-over-month to $476,424.

Data releases in Canada this week include retail sales and CPI. Data releases in the US this week include housing figures, sentiment gauges, and manufacturing indices.

Canada and US government yields are trading 1 to 2bps lower with S&P futures lower (-19.1). WTI crude oil is currently trading at $65.04 per barrel. The Canadian dollar is currently trading at 1.3183 against the US dollar. Today’s expected range is 1.3133 – 1.3233.

Source: Bloomberg

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