The US Consumer Price Index is expected to rise by 0.6% in April after a 0.9% energy-led gain in March, according to a survey compiled by Bloomberg. The year-over-year rate is forecast to accelerate further to 3.7% from 3.3% as a result. The CPI data are scheduled to be released at 8:30 am ET Tuesday.
US existing home sales increased less than projected in April even as affordability continued to improve, data from the National Association of Realtors showed Monday. Sales edged up 0.2% sequentially to a seasonally adjusted annual rate of 4.02 million units last month.
The Bank of Canada is seen increasing its policy rate in March 2027, according to findings in its own Q1 Market Participants Survey released Monday. The MPS showed that a median of 28 financial participants expect the policy rate to rise by 25bps to 2.50% in March 2027.
Policymakers at the Bank of Canada have made clear that higher energy prices alone are unlikely to trigger action, unless oil prices remain elevated for a prolonged period and inflationary pressures broaden out, said Desjardins.
It has been a "rough" winter in terms of Canadian existing home sales, and Scotiabank now awaits the figures for April, due out on Thursday, as they will provide an update and guide marking the beginning of the important Spring market. The next three to four months will inform whether a rebound in the housing market is in the works, said the bank.
The pace of US existing home sales increased by 0.2% to a 4.02 million seasonally adjusted annual rate in April from 4.01 million in March, below the expectations for a 4.05 million rate in a survey compiled by Bloomberg as of 7:35 am ET, data from the National Association of Realtors released Monday showed. Total sales were unchanged from a year earlier.
The details of the Canadian Labour Force Survey for April that were released on Friday were weaker than the headline figure suggests, said Nomura. Jobs fell by 17,700 in April. A sharp decline in full-time jobs was only partly offset by an increase in part-time jobs, noted the bank. The unemployment rate edged higher to 6.9%, while Nomura expected 6.7%, as labor force growth outpaced job creation.
The US dollar rose against its major trading partners early Monday, except for a decline versus the Canadian dollar, with the focus this week on consumer price and retail sales data for April. Monday's schedule is light, with only existing home sales data for April at 10:00 am ET. April consumer price data are the highlight on Tuesday.
April's Labour Force Survey, released on Friday, provided a softer read on the Canadian economy, said TD. According to Statistics Canada, employment was little changed in April, declining by 18,000 versus expectations for a 10,000 gain, while the unemployment rate edged up to 6.9%. The labor force participation rate ticked up to 65.0%, contributing to the rise in unemployment.
US equity investors will look out for consumer price inflation as hopes diminish for a return to Iran peace talks and as quarterly earnings trickle down. * The CPI on Tuesday and producer prices on Wednesday will reveal estimates for the Federal Reserve's preferred personal consumption expenditures, or PCE, inflation gauge on May 28, Scotiabank said in a note late Friday.
A softer Canadian jobs report today saw the unemployment rate up to 6.9% and resulted in a rates rally and curve steepening, RBC Capital Markets said in its latest CAD Weekly Soundbites note. Canadian data also reinforced the Canadian dollar's underperformance versus its G10 commodity and higher-yielding peers over the past month, RBC said.
US equity indexes ended higher on Friday, with the technology sector posting big gains and positive employment data amid reports that the US struck Iranian tankers while awaiting a response to its peace proposal. * The US expects a response from Iran on a proposal to end the war on Friday, Secretary of State Marco Rubio said, adding he hopes "it's a serious offer," CNN reported.
The National Association of Realtors' measure of US existing-home sales is expected to accelerate to a 4.05 million annual rate in April, based on a survey compiled by Bloomberg, after falling by 3.6% to a 3.98 million rate in March. Existing-home sales were at a 4.02 million rate in April 2025, so the year-over-year change would be slightly positive.
The April employment report was mixed, with payrolls growth stronger than expected the unemployment rate unchanged, and hourly earnings growth slower than expected. Nonfarm payrolls rose by 115,000 in April after an upwardly-revised 185,000 gain in March and a downwardly revised 156,000 decline in February.
US benchmark equity indexes were higher intraday as traders parsed the latest jobs report, while oil prices climbed amid renewed tensions in the Strait of Hormuz.
Manufacturing Shipments data due out next Friday "should look reasonably healthy" for March, but will look weaker in volume terms, says CIBC's Avery Shenfeld. Existing Home Sales on Thursday and Housing Starts on Friday, both for Aprii, won't alter the picture of a sector that's been "a drag on growth" in the past year, Shenfeld adds.
US consumer sentiment continued to fall in May as cost pressures tied to the Middle East conflict sent the measure tumbling to all-time lows, University of Michigan's preliminary survey showed Friday. The main sentiment index dropped to 48.2 in May from April's 49.8, which itself was a record low figure.
The US economy added more jobs than projected in April, allaying concerns about a slowdown in the labor market and likely allowing the Federal Reserve to stick to its current policy stance. Total nonfarm payrolls rose by 115,000 last month, the Bureau of Labor Statistics said Friday, well above the 65,000 increase expected in a Bloomberg-compiled survey.
The University of Michigan's preliminary consumer sentiment index fell to 48.2 in May from 49.8 in April, lower than the expectations for a smaller decrease to 49.5 in a survey compiled by Bloomberg.
A modest drop in employment coupled with a sizeable jump in the labour force drove up the unemployment rate two ticks this month, noted TD Economics in looking at the key implications of today's employment data for April.
The Canadian labor market continued its "weak start" to 2026 in April, with a third decline in employment within the first four months of the year, seeing the unemployment rate rise further, said CIBC after Friday's Labour Force Survey.
Canada lost 18,000 jobs, or 0.1% month over month in April, while the unemployment rate increased by 0.2 percentage point to 6.9%, as more people searched for work, said the country's statistical agency in Friday's Labour Force Survey. The employment level and unemployment rate were worse than expected.
The April employment report showed nonfarm payrolls rose by 115,000, above the 65,000 jobs increase expected in a survey compiled by Bloomberg, while March payrolls were revised up to a 185,000 increase and February payrolls were revised down to a 156,000 decrease. Private payrolls rose by 123,000 in April after a 190,000 increase in March, well above the increase of 75,000 private jobs expected.
The US dollar rose against its major trading partners early Friday ahead of the release of the April employment report at 8:30 am ET. Nonfarm payrolls are expected to rise by 65,000 after a 178,000-job gain in March, while the unemployment rate is forecast to remain at 4.3%, and hourly earnings are expected to rise by 0.3% after a 0.2% gain.
The benchmark US stock measures were pointing higher before the open Friday as investors weigh renewed tensions in the Strait of Hormuz and await a key employment report for April. The S&P 500 rose 0.4%, the Dow Jones Industrial Average increased 0.2% and the Nasdaq added 0.6% in premarket activity.
Commerzbank in its "European Sunrise" note of Friday highlighted: Markets: United States Treasuries stabilize, equity futures recover in Asia after volatility from the Strait of Hormuz news. Fed: Minneapolis Federal Reserve President Neel Kashkari is uncertain about the next step, may "need to be up" if SoH is closed for an extended period.
US nonfarm payrolls are expected to rise by only 65,000 in April after a 178,000-jobs gain in March, based on a survey compiled by Bloomberg, while the unemployment rate is expected to remain at 4.3%. The April employment report is due to be released at 8:30 am ET Friday.
Consumer expectations for one-year US inflation growth accelerated to a 3.6% gain in April from a 3.4% gain in the previous month, according to a survey released by the New York Federal Reserve Bank on Thursday. The median inflation expectations remained at a 3.1% gain for the three-year period and remained at a 3.0% gain for five years ahead for the eight consecutive month.
US construction spending rose by 0.6% in March, compared with a 0.2% increase expected in a survey compiled by Bloomberg and following a 0.2% decrease in February.
US initial jobless claims rose to a level of 200,000 in the week ended May 2 from an upwardly revised 190,000 level in the previous week, compared with expectations for a larger increase to 205,000 in survey of analysts compiled by Bloomberg. The four-week moving average fell by 4,500 to 203,250 after decreasing by 3,250 to a level of 207,750 in the previous week.
The US dollar fell against its major trading partners early Thursday ahead of the release of weekly jobless claims and the preliminary estimate of Q1 productivity, both at 8:30 am ET.
Commerzbank in its "European Sunrise" note of Wednesday highlighted: Markets: United States Treasuries trade sideways in New York and Asia. Fed: Chicago Federal Reserve President Austan Goolsbee says impact of Artificial Intelligence on monetary policy uncertain; rate cuts possible if productivity growth happens unexpectedly, otherwise rates could rise.
Ahead of the upcoming summit between the United States and China, Bank of Montreal noted that the bilateral trade imbalance is melting before its eyes. In fact, the latest trade data for March revealed that the U.S. now runs a larger trade deficit with Taiwan than it does with China, said the bank. This is no "onemonth wonder," pointed out BMO.
The European stock markets were surging higher in Wednesday trading amid reports that the US and Iran are close to an agreement that could end the war in the Middle East. The Stoxx Europe was rising 2.1%, Germany's DAX was advancing 2.2%, the FTSE 100 was up 2%, France's CAC was gaining nearly 3%, and the Swiss Market Index was heading 1.7% higher.
Canadian Prime Minister Mark Carney should start to think twice about cozying up to China and forging stronger links with the European Union, said Rosenberg Research after Tuesday's latest Canadian merchandise trade. The trade surplus with the United States in March more than doubled from $2.8 billion to a six-month high of $7.1 billion, noted Rosenberg Research.
Canada's Ivey Purchasing Managers Index, seasonally adjusted, rose to 57.7 in April, indicating that purchasing activity increased compared to the previous month. The Ivey PMI was 49.7 in March and 47.9 in April 2025. Last month's Ivey PMI was much better that the 49.9 consensus expectations provided by MUFG.
State-level data released by the Bureau of Labor Statistics Wednesday showed the unemployment rate was little changed in March in all fifty states and Washington DC. South Dakota had the lowest rate at 2.3%, while Washington DC had the highest at 6.3%. The national unemployment rate was reported at 4.3% in March, down from 4.4% in February.
ADP's monthly measure of private payrolls showed a 109,000 increase in April, below expectations compiled by Bloomberg as of 7:20 am ET for an increase of 120,000. The April gain followed a downwardly revised 61,000 increase in March.
The US dollar fell against its major trading partners early Wednesday ahead of the release of ADP private payrolls data for April at 8:15 am ET and the Treasury's quarterly refunding statement at 8:30 am ET. State-level unemployment data for March are due to be released at 10:00 am ET, followed by weekly petroleum stocks at 10:30 am ET.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
Log In Required
Publication Date