The Gross Domestic Product report for Canada is due to be released on 23 December 2013. The report will cover the month of October 2013. Currently, experts have not released any predictions regarding the possible direction that the report may take.

Readers are reminded that the GDP is the combination of a country’s consumption, investments, government spending and the difference resulting from comparing exports and imports. As such, it provides economists a snapshot of how a country is progressing over a given period of time.

Analysts note that the Canadian economy has faced increasing difficulty in recent months. They cite the gains made by the US in rebounding from the recession and a long period of low oil prices as some of the major factors in the failure to improve the economic situation there. As has been noted in the past, oil is Canada’s most significant export and is highly influential on the economy in that it affects both jobs and the influx of currency.

While traders should watch for potential fluctuation in the value of the loonie following the release of the report, it is possible that some of the negative effects may be offset by reports of a rise in the price of oil over the past week or so.

US Durable Goods Report Due Out Tuesday

The report outlining changes in the level of Durable Goods being ordered in the US is expected to be issued tomorrow 24 December 2013. The report will examine the figures for the previous month of November 2013. At this time, many experts expect to witness a significant rise in the level of purchases made by Americans during this period.

Readers are reminded that this report is meant to provide a clearer picture to economists on the state of consumers in the US, focusing on their feelings regarding their ability to purchase durable goods that are not generally considered as immediate or basic needs. These durable goods can range from products including televisions, cars, and other items that consumers may decide to hold off on buying until they are in a more stable economic position. As such, when observers are provided with a report that shows that the advance sales have risen, they can assess from this that more people are employed and are willing to engage in the economy.

Analysts note that with the massive improvements in the American economy that were witnessed during the month of November, they expect to see a considerable rise in the numbers for this report. In particular, the spike in the number of jobs that were added and the lowering of the unemployment rate to the lowest level since 2009  will likely have influenced more consumers to make larger purchases that they may not have in previous months. This report comes as the Federal Reserve has expressed its level of confidence in the American economy by announcing reductions to the $85 billion stimulus. Traders are advised to look for the USD to rise in value in trading against many of its rivals after this report is released.

WTI Gains on US Growth

It was reported on 23 December 2013 that prices on crude oil at the West Texas Intermediate energy market had risen to the highest levels in nearly two months. Experts cited that the improved outlook on the American economy was the primary motivator behind the jump in prices.

Analysts note that crude oil had been trading a relatively low prices up until recently as reports had shown US stockpiles to be at high levels, pushing down demand. Readers are reminded that the American market is the world’s largest consumer of oil, and thus extremely influential on the global price. However, in recent weeks new estimates have pointed to a drop in US stockpiles, helping to boost prices.

The massive improvement on the jobs front that has been witnessed in the US over the past two months has helped to increase confidence for investors and economists. With the expectation of continued growth over the coming months, including by the International Monetary Fund, traders appear more willing to allow prices of crude to rise. Traders should look for an increase in the price of crude over the coming days while remembering that the oil market is prone to fluctuations.