TD/ Canada Trust Economic Highlights – Sept 17

HIGHLIGHTS OF THE WEEK – Sept 17

United States

  • The U.S. economic calendar was light this week, falling in the typical post-payrolls data lull. Despite that, there was plenty of action in financial markets, as investors fretted about the referendum in Scotland, on-going geopolitical risks, and most importantly next week’s FOMC meeting.
  • With the Federal Reserve’s QE program likely to end in October, and with improvement in the economic backdrop occurring faster than the Fed had anticipated, markets have begun pricing in an earlier rate hike.
  • On the data front, U.S. retail sales did not disappoint, growing by 0.6% m/m in August, bang on market expectations. Strong positive revisions added to both July’s and June’s totals. All in all, today’s data painted a brighter picture of consumer activity than previously thought.

Canada

  • The Canadian dollar saw a decline of over one cent vis-à-vis the greenback this week, as commodity prices softened and speculation increased that the Fed could be more hawkish at next week’s meeting.
  • Positive news on the housing market dominated Canadian data releases this week. Releases on the housing market and household balance sheets suggest that the housing market remains strong, leading to higher household net worth, but also indebtedness.
  • Overall, it would appear that the housing party continues, but households are nearing their limit. We con­tinue to expect an orderly deceleration in the housing market, but caution that the situation remains fluid, and careful monitoring is warranted.

 

For further information, please contact:

John Maveety Manager, Residential Mortgages – Greater Ottawa Area TD Canada Trust
T: (613) 371-1984 F: (888) 899-1984 P: (866) 767-5442
John.Maveety@td.com

 

For further information, please contact:

John Maveety Manager, Residential Mortgages – Greater Ottawa Area TD Canada Trust
T: (613) 371-1984 F: (888) 899-1984 P: (866) 767-5442
John.Maveety@td.com

– See more at: http://www.ottawaishome.com/english/news/td-canada-trust-economic-highlights-sept-10.htm#sthash.IW6pyEXz.dpuf

For further information, please contact:

John Maveety Manager, Residential Mortgages – Greater Ottawa Area TD Canada Trust
T: (613) 371-1984 F: (888) 899-1984 P: (866) 767-5442
John.Maveety@td.com

– See more at: http://www.ottawaishome.com/english/news/td-canada-trust-economic-highlights-sept-10.htm#sthash.IW6pyEXz.dpuf