Loonie Up as Canadian GDP Beats Expectation

Friday, June 29, 2018
 

Canadian GDP grew 0.1% versus an expected 0.0% and is driving the loonie to weekly highs. The associated business outlook survey was also more positive than expected and markets are now pricing a 70% chance of an interest rate increase on July 11.  Highlights included robust foreign demand for Canadian goods and improvements in commodity prices. Canadian raw material prices were up 3.8% versus an expected 1.2% showing higher than expected inflation in the economy.

 

The US dollar is off recent highs on mixed data. University of Michigan sentiment missed expectation at 98.2 versus 99.1, but Chicago PMI beat at 64.1 versus 60.1. Although it was a miss, consumer sentiment was still the highest in 3 months.

 

The Euro is trading sideways this morning with German unemployment numbers better than expected but German retail sales worse than expected. Overall Eurozone CPI numbers came in at expectation. The EU economic summit continues today and no market moving headlines have crossed as of yet.
 

Markets are up to end the week with the Dow up 1.07%, the S&P up 0.85%, NASDAQ down 0.33% and the TSX up 0.64%. Crude oil is up 0.63% ($73.94) and Gold is up 0.15% ($1,252.90).

 

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