Last week’s trade balance data was wider than expected, while retail sales data showed spending at a slower pace of growth in Q1 than in Q4. Consumer sentiment also weakened sharply in early March, indicating that consumers are feeling the pinch from higher oil prices. We have lowered our growth tracking estimate for Q1 2011. We also take a look at upcoming economic data, including housing starts and CPI. The FOMC meets this week, and the focus will be any changes in language around the economic recovery, rather than changes to policy guidance.
In Canada, the[...]