Canada: Improvement in Q4 business sentiment – RBC


Josh Nye, senior economist at the Royal Bank of Canada, points out that yesterday’s Canadian Business Outlook Survey showed a modest improvement in sentiment in the late stages of 2019, suggesting a recent run of soft data overstated the economy's slowdown in H2/19.

Key Quotes

“Indicators of future sales strengthened and hiring intentions picked up, though the capex outlook softened after some large projects were completed. Concerns about trade tensions were less prevalent (even though the survey period closed slightly before a US-China phase-one deal was reached, Brexit was sorted out, and odds of USMCA ratification rose) though concerns about US protectionism remained. Perhaps most significantly for the BoC, the economy appears to be operating close to full employment outside the Prairies with firms continuing to report capacity pressures and labour shortages. Even in the Prairies, where sales growth slowed further, there were reports that the energy sector may have bottomed out toward the end of last year.”

“An improvement in business sentiment in Q4 and indications the economy remains close to full capacity give the BoC reason to discount some of the soft economic data we saw in late-2019. So while the BoC looks set to mark down its Q4/19 GDP growth forecast in January, its tone likely won't be as pessimistic.”

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD: Consolidates losses around one-week low beyond 0.7100

AUD/USD keeps pullback from 0.7134, bulls await clear direction to extend the three-day losing streak. Risk-tone recently dwindled amid US stimulus chatter, gold’s crash supersedes everything.

AUD/USD News

Gold prices collapse to $1,910 as huge profit-taking kicks-in

Positioning squeeze has taken place as the bulls feeling the heat bail out in droves, triggering stop losses to the bottom of the abyss. Real rates have been on the incline since last week's Nonfarm Payrolls report which beat expectations.

Gold News

WTI buyers aim to regain $42.00 despite downbeat API data

WTI keeps the bounce off $41.70 following initial downtick amid weaker than prior inventory levels. US-China tussle, uncertainty over American stimulus weigh on the commodities with rising US dollar exerting additional downside pressure.

Oil News

USD/JPY climbs to 18-day highs near 106.50 on surging US T-bond yields

Despite the broad-based USD weakness during the first half of the day, the USD/JPY pair stayed relatively quiet near 106.00 as the JPY struggled to find demand as a safe-haven. 

USD/JPY News

Will NZD see deeper correction as European fx outperform?

Currencies and equities traded higher on the back of better than expected economic data and reports from Russia that they’ve won the global vaccine race. While Russia announced the world’s first approved vaccine ...

Read more

Forex MAJORS

Cryptocurrencies

Signatures