The Week Ahead
Thursday, July 10, 2008
This week will begin with a number of Federal Reserve speakers and see the release of housing data in both Canada and the U.S. on Wednesday. The relatively quiet week will culminate on Friday with Canada's employment report for June, which is expected to be a key market focus.
Whereas June's change in employment is anticipated to increase by 10k, following a previous increase of 8.4k, the unemployment rate is expected to hold steady at 6.1%.
Economists from Scotia Capital, however, are calling for an increase in the unemployment rate as well. "The impression that Canada's labour market is holding up better than in the U.S. is generally true. As markets look forward to next Friday's Canadian jobs report for June, however, it would be a mistake to ignore emerging pitfalls," they wrote in a research note to clients.
"Canada's buoyant housing market will continue to support construction employment, while public sector employment is expected to gain once again. Nonetheless, this will likely only lead to a gain of around 5,000 workers. As a result, we are expecting the unemployment rate to move up slightly to 6.2% in June."
In the U.S., meanwhile, June's University of Michigan consumer sentiment index is scheduled to be released. Economists are forecasting a preliminary reading of 55.5, down from May's 56.4.
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Posted byAdmin at 1:02 PM
Labels: mortgage market, mortgage news