For the week of December 3 – 7.
GDP released weaker than expected for the month of September in Canada. Instead of increasing by 0.1 percent as expected, the measure dropped by 0.1 percent on a month-over-month basis. Growth missed expectations on a year-over-year basis as well, growing by only 2.1 percent. In terms of quarterly annualized GDP, the measure is sitting at 2.0 percent for the third quarter, in line with expectations.
Data releases in Canada this week include International Merchandise Trade, employment, housing starts, and building permits. November employment in the country is expected to have increased by 10.0K positions after a similar increase of 11.2K in October. The Bank of Canada is also holding a policy meeting on Wednesday. Currently, the markets are pricing in a zero percent chance of an interest rate hike at this meeting. The implied probability increases to 57.7 percent for the following meeting in January.
Data releases in the United States this week include ISM manufacturing, ADP employment change, Trade balance, employment and wholesale inventories, and trade sales. In addition, the Fed will also be releasing its Beige Book on Wednesday.
The Canadian dollar is currently trading up against the US dollar. Today’s expected range is 1.3145 – 1.3245.