HIGHLIGHTS OF THE WEEK – Aug 17
- After holding the Renminbi-USD exchange rate relatively steady for the past few years, China lowered the midpoint of the daily trading range of the RMB relative to the USD by 1.9% on Tuesday. This was the largest one-day change since 1993. By week’s end, the renminbi had fallen 3% vs the USD, but movement from here should be limited.
- A new bailout plan between Greece and its creditors was agreed to and approved by the Greek parliament. This removes a shroud of uncertainty hanging over the euro area, where second quarter GDP figures showed the economy grew 1.3%, short of expectations. Amidst reduced Greek-related volatility and positive fundamentals, a rebound is expected.
- Domestic data continues to show improvement in America. Retail sales grew 0.6% in July, while June was revised to flat from -0.3%, in a sign that consumer spending is stronger than initially thought. Industrial production also grew 0.6% in July, its strongest print since November 2014.
- Looking beyond near-term financial market volatility, global events this week do not alter our Canadian economic and financial outlook for the second half of 2015 and 2016. Over the second half of the year, Canadian economic fortunes are likely to be boosted by a continued strength in housing market activity and an expected pick-up in U.S. demand.
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) 767-5446