Weekly Economic Update

For the week of October 22 – 26.

The week of the Bank of Canada’s policy meeting has arrived. Outside of the central banks interest decision on Wednesday, the only other notable release this week is from wholesale trade sales this morning. As of today, the market implied probability of the Bank of Canada increasing interest rates on Wednesday is 96.4%. Scheduled data releases in the United States this week include Markit US manufacturing PMI, new home sales, wholesale inventories, durable goods orders, and GDP. Also of note, the European Central Bank will be making a rate decision this week on Thursday.

Missed expectations for both retail sales and consumer prices last Friday ended the week on a disappointing note. Retail sales fell by 0.1 percent in August against expectations for a jump of 0.3 percent. July’s 0.3 percent growth was also revised downward to 0.2 percent.

Although economists were calling for growth of 0.1 percent, consumer prices fell by 0.4 percent in September, marking the second straight month of indicator declines. On a year-over-year basis, prices are up by 2.2 percent, dropping from last month’s reading of 2.8 percent.

The Canadian dollar is currently trading up against the US dollar. Today’s expected range is 1.3033 – 1.3133.

Source: Bloomberg

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