HIGHLIGHTS OF THE WEEK – June 15
• Sparse economic data this week has left market participants dwelling on last Friday’s very weak jobs report.
• Chair Yellen’s speech on Monday did not reiterate the previously used phrase that the FOMC is considering a rate hike ‘in the coming months’, leaving markets confident that the Fed is in no rush to raise rates at this point.
• A slew of domestic data next week, along with the new Fed projections, will provide markets with more to chew on as investors try to get a better read on the broader economic outlook.
• The employment market showed some modest improvements in May, with the Canadian economy adding 14,000 jobs in the month and the unemployment rate edging down to 6.9%, the lowest level since July 2015.
• May’s employment report reinforced comments made in the Bank of Canada Financial System Review that markets with the strongest housing markets also have the strongest labour markets. B.C. and Ontario are outperforming the rest of Canada, while Alberta shed a further 20,000 jobs in May.
• New home construction eased for a sixth straight month in May, underscoring the view that some of the pressures on home prices reflects supply constraints. Still, the amount of debt Canadians have to take on to purchase these expensive homes is a concern.
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