Weekly Economic Update

For the week of July 16 – 20.

The University of Michigan sentiment posting in the United States dropped to a level of 97.1 for the month of July, missing expectations of 98.0, and falling from June’s posting of 98.2. The detail also notes the decreased reading of inflation for both current conditions and predictions for 1 year, and 5-10 year. The decrease will most likely fuel the ongoing fire of the debate on whether or not the Federal Reserve will proceed to increase interest rates.

In the Federal Reserve’s semi-annual monetary policy report, the central bank re-affirmed its position of gradually hiking interest rates. The Federal Reserve also confirmed their belief these hikes will be able to exist along with an expanding economy, strong labor numbers, and an inflation rate close to target level. If the Reserve is planning to stick to their original plan, they will need to hike interest rates twice more in 2018 (after already hiking twice this year).

Even though oil prices are down slightly this morning, the Canadian dollar is currently trading up against the US dollar. Today’s expected range is 1.3092 – 1.3192.

Source: Bloomberg

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