Like sports fans would say, the Canadian economy has momentum. Yesterday, Manufacturing Shipments data showed a post-recession high in factory sales. What is particularly interesting with regard to this reading is that gains were achieved in all provinces, including those exposed to oil production. In light of this data and considering the strength of the service sector, our economists believe that the Canadian economy grew at the impressive pace of 2.5 to 3.0% in the second quarter of 2017.
It should be noted that this manufacturing showing was achieved in an environment where the USD/CAD pair was hovering around 1.3000. Will this performance be maintained after the loonie’s recent rise?
In political news, the United States, Canada and Mexico agreed to meet seven times for talks to renegotiate NAFTA, from August 16 to 20. The outcome of these talks should be known early in 2018.
This morning, the U.S. dollar is up as we await the European Central Bank’s key rate decision. Stay tuned for more details.
Julien Duquette
Range of the day : 1.2565 – 1.2670