Weekly Economic Update

For the week of August 7 – 10.

Scheduled releases in Canada this week include building permits, housing starts, and  employment numbers. Scheduled releases in the United States this week include wholesale inventories and consumer prices. Excluding food and energy, consumer piStock-466104357_edited.jpgrices are expected to grow by 0.2 percent for the month of July. On a year-over-year basis, prices are expected to jump by 3.0 percent, or 2.3 percent when excluding food and energy.

China is currently fighting back against the implication of tariffs on their country set by the United States. Once the United States confirms their measures, Chinese officials announced they will be placing duties of up to 25 percent on approximately 60 billion dollars worth of goods.

Nonfarm payrolls fell short of the expected 193K for the month of July, landing at 157K. However, both May and June’s postings were revised and combined to 59K jobs, making up July’s shortfall. As expected for the prior reading, the employment rate for the United States decreased to 3.9 percent from 4.0 percent.

Canada’s international merchandise trade deficit declined to the level of -0.63b for the month of June, lower than the prior level of -2.72b. Oil producers and aircraft makers were the main contributing factors in Canada’s export increase. Overall, exports increased by 4.1 percent, coming in as a slight surprise in the face of recent tariffs (most notably on steel) imposed on Canada by the United States.

The Canadian dollar is looking strong against the US dollar this morning. Today’s expected range is 1.2919-1.3019.

Source: Bloomberg



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