HIGHLIGHTS OF THE WEEK – May 8
• The past week was action packed with economic data and events in Washington. Data largely supported
the view that the U.S. economy will bounce back from its winter weakness.
• The job market sprang back into action in April, enabling investors to heave a sigh of relief that the fundamentals
remain in place for a Q2 rebound. The Fed expressed its confidence in the economy in its
statement accompanying its stand pat rate decision.
• Still, weak auto sales and a recent loss in inflation momentum suggest the U.S. economy is not entirely
out of the woods. The Fed will be watching the data closely in the coming weeks before the case for a
June hike is cemented.
• An 8% drop in crude oil prices led the S&P/TSX to a 6-week low and took the loonie below 73 US cents
for the first time in over a year.
• The Canadian economy added just 3k jobs in April. The unemployment rate fell to 6.5% as 45k people
left the workforce. Wage growth slowed to a record low of just 0.5% y/y.
• Auto sales slipped 1.6% y/y in April, but this follows a record breaking quarter. Sales remain quite elevated
relative to historical norms.
• Exports bounced back in March, helping to narrow Canada’s trade deficit. However, net trade will still be
a drag on growth during the first quarter.
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