Rates have remained low and range-bound for some time now as the market digests a stream of generally soft data which has raise questions related to the robustness of the economic recovery.
In terms of data that was out today in the US we saw several measures of the Producer Price Index at or slightly above expectations, while Housing Starts “rose” in July due to a downward revision in the June number. Adding to housing concerns in the US, Building Permits declined 3.1% in July. Positives include an increase in Industrial Production +1.0% (+0.5% had been expected) as well as a greater than expected increase in Capacity Utilization to 74.8% from 74.1%.
Canadian data today was limited to June Manufacturing Sales which rose 0.1% (-0.5% decline had been expected).
The big news this week is on Friday when we get the Canadian CPI numbers for July.