For the week of January 21 – 25.
Consumer prices in Canada beat expectations for the month of December, with growth coming in at -0.1 percent on a month-over-month basis instead of the -0.4 percent growth hat was expected by economists. On a year-over-year basis, growth levels jumped to 2.0 percent from 1.7 percent a month prior. Expectations were for this growth level to remain at 1.7 percent in December. A great deal of the December’s strength stemmed from an increase in airfares (up 22 percent). Despite a stronger posting on a headline basis, many are seeing the underlying details are not strong enough to drastically sway the Bank of Canada’s hand.
It will be a quiet day for data today in both Canada and the United States. Data releases in Canada this week include the weekly update on Bloomberg Nanos Confidence, wholesale trade sales, manufacturing sales and retail sales (all for the month of November). Data releases in the United States include releases for existing home sales, wholesale inventories, durable goods orders and new home sales.
The Canadian dollar is currently trading down against the US dollar. Today’s expected range is 1.3242 – 1.3342.