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(CEP News) - It's a busy day in North America, with much of the focus on the FOMC interest rate decision. Markets will also receive important U.S. first quarter GDP data and ADP Employment. In Canada, February's GDP data will also be released, and Bank of Canada Governor Mark Carney and Finance Minister Jim Flaherty will speak in Parliament.
Looking at the FOMC decision, the consensus is for the Fed to cut 25 basis points. Gian Espejo, senior dealer at GCI Financial Ltd, said he expects the Fed to signal that a 25 basis point cut Wednesday afternoon will be the last in this current easing cycle. "The Fed is likely to signal that there is likely an adequate of monetary stimulus in the pipeline and reinforce it is ready to act as conditions warrant," he said. "Markets want the Fed to take a break and be mindful of the fact that real U.S. interest rates are now south of 0%." Prior to the FOMC, markets will receive the advanced reading of U.S. first-quarter GDP, which is expected to rise 0.5% following a 0.5% rise in the fourth-quarter of 2007. Paul Mendelson, chief investment strategist from Windham Financial Services, said he expects the GDP report to be more important than the FOMC meeting. He added that markets will be happy with anything above zero. "I don't think the Fed decision is really the issue for tomorrow. I think the GDP is going to be more important to the markets. If that number comes in negative the markets are not going to like that," he said. "I would expect a positive number tomorrow and I would be surprised for a strongly negative number tomorrow, anywhere from a couple points above zero. Three-tenths up five-tenth up is going to be a good number." Markets will also get a glimpse of the U.S. employment sector with the release of the U.S. ADP employment report. Economists expect ADP to show that 60,000 jobs were lost in April compared to a gain of 8,000 jobs in March. April's Chicago PMI report will also be released Wednesday morning, which is expected to come in at a reading of 47.2, down from March's reading of 48.2. In Canada, markets will receive February GDP information, which is expected to rise 0.2% following a 0.6% rise in January. Markets will also listen to what BOC Governor Mark Carney and Canadian Finance Minister Jim Flaherty have to say when they speak before the House Committee on Finance. All times in EDT. Wednesday 7:00 US MBA Mortgage Applications 25-April Prior: -14.2% 8:15 US ADP Employment Change April Exp: -60K Prior: 8K 8:30 CA Industrial Product Price (M/M) March Exp: Exp: +1.0% Prior: +0.1% 8:30 US GDP Annualized 1Q Advanced Exp: +0.5% Prior: +0.6% 8:30 CA Gross Domestic Product (M/M) FEB Exp: +0.2% Prior: +0.6% 8:30 CA Raw Materials Price Index (M/M) March Exp: +2.0% Prior: +0.5% 8:30 US Personal Consumption 1Q Advanced Exp: +0.7% Prior: +2.3% 8:30 US GDP Price Index 1Q Advanced Exp: +3.0% Prior: +2.4% 8:30 US Core PCE (Q/Q) 1Q Advanced Exp: +2.2% Prior: +2.5% 8:30 US Employment Cost Index 1Q Exp: +0.8% Prior: +0.8% 9:45 US Chicago Purchasing Manager April Exp: 47.2 Prior: 48.2 10:00 US NAPM-Milwaukee April 47 10:30 US DOE U.S. Crude Oil Inventories 25-April Exp: +950K Prior: +2421K 10:30 US DOE U.S. Gasoline Inventories 25-April Exp: -1000K Prior: -3179K 10:30 US DOE U.S. Distillate Inventory 25-April Exp: -400Prior: -1377K 10:30 US DOE U.S. Refinery Utilization 25-April Exp: +0.25 Prior: +4.22% 14:15 US FOMC Rate Decision 30-April 2.0% Prior: 2.25% 15:30 CA BOC's Carney and Fin Min Flaherty in front of House Committee on Finance By Neils Christensen,
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, edited by Cristina Markham,
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