For the week of October 1 – 5.
Canadian GDP exceeded expectations for the month of July, growing by 0.2 percent on a month-over-month basis, and by 2.4 percent on a year-over-year basis. 12 out of 20 measured industrial sectors experienced increases. Manufacturing was the largest increasing contributing factor (0.13 percentage points), while construction was the largest decreasing contributing factor.
Scheduled data releases in Canada this week include Markit Canada’s manufacturing PMI, international merchandise trade, and employment. September’s employment figures will follow up August’s 51.6K positions. Scheduled data releases in the United States this week include Markit US manufacturing PMI, construction spending, ISM manufacturing, ADP employment change, durable goods, trade balance, and employment. Nonfarm payrolls are expected to release at a level around 185K for the month of September.
The Canadian dollar is up significantly this morning after a deal was reached to include Canada in a trilateral NAFTA deal. Negotiators worked around the clock over the weekend to reach their Sunday deadline. The new deal offers greater access to Canadian dairy to the United States. Further details will be provided in tomorrow’s update. Today’s expected range for the Canadian dollar is 1.2756 – 1.2856.