Only two key reports will be released later on the day with on one hand the Bank of Canada set to reveal its rate decision, while that later on the day the Fed’s Beige Book will be released to give a up to date and future portrait of the country’s economic health on current economic conditions in each of the 12 Federal Reserve districts covering the US. Now today’s Beige Book is likely to show once again that growth expansion remains detected across all or most of the twelve Federal Reserve Districts and that the economy picked up across most of the country last month on better enhanced auto and home sales. Keep in mind that just yesterday we saw that March’s new-home sales jumped 7% on the month, the highest gain since mid-2008, and well above expectations of a 1.7% rise while that the first quarter earnings of big U.S corporations released so far are in overall cheerful and above forecasts. However the U.S continues on facing challenges and the growth pace is at a slow and unstable pace; having yesterday only the International Monetary Fund (IMF) lowering its outlook once again for the world economy this year; it said the U.S. government spending cuts will slow growth and keep the euro currency bloc in recession. As for the nation’s territorial neighbor and major trading partner; Canada, its Bank will release its rate decision and is expected to once again leave ts benchmark interest rate steady at 1.0 percent to continue on supporting its growth and overall activities since that overall trading remains hammered by a global weaker economic conjuncture and health. Yet the Bank of Canada expects economic growth to pick up through 2013; a growth by 2.0 percent in 2013 and 2.7 percent in 2014 and the economy will return to full capacity at the second half of 2014 while that business investment and exports are expected to rebound as foreign demand strengthens, and uncertainty diminishes.
EasyForexNews Research Team