Pleasant surprises in Canada
It’s difficult to say whether the Canadian economy is back on the growth track, but it does continue to surprise. Last Friday, two more indicators beat economists’ forecasts, namely Retail Sales and Inflation. According to analysts, these data show that consumer spending in Canada should be satisfactory for the first quarter of 2016. In February and March, the impressive gains by the loonie finally allowed Canadians to take advantage of low gas prices to boost their consumption. Despite the positive outlook, these factors could be temporary and growth may slow over the year. Given this context, a few disappointing indicators could drag the loonie back down against the greenback. USD sellers need not despair, 1.3000 is still reachable!
Little news of note is expected today at home, although south of the border, New Home Sales will bear watching. Wednesday will be the big news day this week when the Federal Reserve announces its key rate decision at 2 p.m.
