Yesterday, Prime Minister Stephen Harper launched what will be the longest federal election campaign since 1872 and consequently, the most expensive. This is a bold move, given that the Canadian economy shrank again by -0.2% in May. Since the beginning of 2015, our GDP has contracted by a total of -0.8%, mainly due to plunging oil and commodity prices. Not surprisingly, the loonie has at the same time reached lows not seen since 2004.
Overnight, West Texas Intermediate continued its slump, further to comments by Iranian officials that their production can be ramped up as soon as international sanctions are lifted. This means that an excellent opportunity to safeguard against crude oil volatility should soon be on the horizon. In other news, Greece's stock markets reopened today and equities nosedived, with some like the National Bank of Greece SA plummeted -30%, which is the maximum daily limit.
On this day off in most of Canada, our attention will shift to economic indicators south of the border, such as growth in Personal Income and Personal Spending, Construction Spending and Manufacturing data.
Have a great day!
- Range of the day: 1.3100 - 1.3200
Salim Laaroussi