Weekly Economic Update

For Week of December 31 – January 4

Another slow week for data is expected out of Canada this week. Despite not having many indicators releasing data, we are still expecting to see updated employment numbers on Friday. December employment numbers are expected to show an increase of 10.0K positions after remarkable 94.1K positions were added a month earlier. The unemployment rate is expected to tick slightly higher to a level of 5.7 percent from 5.6 percent in the previous reading.

In the United States, we are expecting to see a bit more data this week including releases for wholesale inventories, new home sales, ADP employment change, ISM manufacturing, construction spending and finally nonfarm payrolls. Nonfarm payrolls for December are expected to show an increase of 180K positions after a disappointing 155K a month earlier. The unemployment rate is expected to remain at a level of 3.7 percent.

There are talks of a potential meeting being set up between the President of the United States Donald Trump and Fed Chair Jerome Powell. Although many think a meeting such as this could ease tensions between the two, many others are warning Powell it may not be a good idea. A meeting between the two could give investors the impression that the Fed is not as independent as originally thought.

The Canadian dollar is currently trading up against the US dollar. Todays expected range is 1.3575 – 1.3675.

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