Inflation in the U.S. increased a seasonally adjusted 0.2% in January, for a 12 month, unadjusted rate of 2.9%. Core inflation for 12 months stands at 2.3%.
Initial jobless claims in the U.S. dropped to a new cyclical low of 348K in the second week of February, nearly 20K below expectations.
And Canada’s international securities transactions report indicates an on-going appetite for Canadian assets. In December foreigners acquired $4.7B worth of securities, including $2.1B in bonds. Foreigners purchased a total of $95.6B worth of Canadian securities in 2011, down from $117.4B in 2010.
Next week, look forward to Canadian Retail and wholesale trade numbers, U.S. existing home sales , Canadian Q4 corporate profits and American consumer sentiment.