Party horn blowers and confetti

There are three things to watch in Canada for the week ahead, a National Bank report says: January’s labour force survey, housing starts, and December’s merchandise trade balance. 

National Bank said in a research note that it expects a strong jobs report on Feb. 9, despite Canada’s unemployment rate already sitting at a historic low of 5.8%.  

Read: Canadian job market even better than it looks: CIBC

That would “normally call for a negative print in January, but we believe that the party is not over yet,” the bank says. “Indeed, we are calling for a 50K increase in the first month of the year, a development that would bring the unemployment rate down two ticks to 5.6%.” 

The bank is less optimistic about housing starts, which it says will decline. It also calls for the trade deficit to widen to $2.7 billion.

Read: How mortgage rules will impact market

In the U.S, it will be a light week, says National Bank, with the main economic news items being December data on international trade, wholesale trade sales and consumer credit.

Read the full report.

Originally published on Advisor.ca
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