Analysts at TDS explain that the Canada’s winter Business Outlook Survey sounded much like the autumn edition, notably on capacity pressures and pointing to diminishing labour market slack, despite some moderation in the sales outlook.
“Not that Governor Poloz needed more strong data to hike next week, but this report certainly adds to a series of reports supporting the case for policy normalization.”
“Rates: Ahead of the BoC interest rate announcement the path of least resistance will be towards higher rate and/or underperformance versus Treasuries. In the near-term, we continue to favour 2s5s steepeners.”
“FX: The report did little to stir CAD. After closing our short USDCAD trade on Friday, we remain biased for a pushback above 1.25 in the short run amid unpriced NAFTA risks.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.