Weekly Economic Update

For the week of October 15 – 19.

Expected data releases in Canada this week include manufacturing sales, retail sales, and the ever-important consumer prices. Manufacturing sales are expected to have dropped by 0.8 percent in August after increasing by 0.9 percent in July. Retail sales are expected to have increased by 0.4 percent on a headline basis in August, and a lesser 0.2 percent when excluding autos. This 0.4 percent increase follows the slightly lower 0.3 percent gain in July.

Economists expect consumer prices will reverse August’s 0.1 percent decline, and will increase by 0.1 percent for the month of September on a month-over-month basis. The Bank of Canada will most likely be watching the results of this release, since their upcoming October 24 policy decision meeting is fast approaching. Currently, there is a 98.2 percent market implied probability of an interest rate hike at this meeting.

Expected data releases in the United States this week include retail sales, monthly budget statement, housing starts, and building permits.

The Canadian dollar is currently trading relatively flat against the US dollar. Today’s expected range is 1.2976 – 1.3076.

Source: Bloomberg

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