Market Focus

On Monday, January 22, 2018, the economic calendar will not full a significant amount of news. At the beginning of the week, attention should be paid to the data on wholesale sales in Canada. This indicator is an indicator of consumer spending and, accordingly, a leading indicator of the level of inflation in the country.

According to the forecast, the volume of wholesale sales in November increased by 0.6%, which is lower than the growth of the previous month at 1.5%. The change in inflation indicators plays a key role in the decision to change the interest rate. It is worth recalling that the report of the January meeting of the Bank of Canada did not indicate a timeframe for further interest rate hikes, and a slowdown in inflation could add even more uncertainty to this issue. The release of data within the forecast will put pressure on the Canadian dollar. As a result,it is expected its reduction within 40 points against the basket of currencies.

Alexander Sivtsov