Last week, data out of the US showed that inflationary pressures softened in July, which may alleviate some pressure on the US Federal Reserve Board to raise interest rates at its September meeting. This week, we will learn about Canada’s inflation rate in July. Did it accelerate? Did it slow? How will it impact the Bank of Canada’s (BoC) next interest rate decision? Beyond inflation, there will be several key economic announcements in Canada and elsewhere that will keep investors busy analyzing how it will impact the global economy and financial markets.

• Canada’s inflation rate for July will be announced today. Canada’s inflation rate slowed to 2.8% in June. While still above the BoC’s target, signs of moderating may keep the BoC from raising interest rates at its upcoming meeting.
• Canadian retail sales in June will be released on Friday.  
• In the US, housing starts, building permits and pending home sales will be announced this week. The results should give markets some insight into the health of the US real estate market.
• Elsewhere, the UK unemployment rate will be released on Tuesday, Europe’s inflation rate on Wednesday, Japan’s trade balance on Wednesday night, Japan’s inflation rate on Thursday and Europe’s services sector activity on Friday.
• Earnings announcements in Canada will slow this week. Key earnings in the US include The Home Depot, Target and Walmart.  

The big headline data in Canada will be today’s inflation report. This will help guide investors’ predictions on the next move of the BoC. Canada and the US are expected to present a trade deal to US President Donald Trump this week before new tariffs are set to be imposed on August 19. There are certainly plenty of expected announcements that will surely guide the direction of financial markets over the week.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.