Free Trial

Barclays - Markets Don’t Yet Price Enough Dovishness From BoC vs The Fed

CANADA
  • Barclays write that “we got a slew of dovish data out of Canada last week, with the release of the Business Outlook Survey, the survey of consumer expectations and retail sales.”
  • “Most importantly, disinflation in Canada resumed in June; all three of the BoC’s preferred inflation measures (CPI trim, median and common) are within the bank's 1-3% target range and moving closer to the middle of the range.”
  • “This has solidified the case for a cut at this week’s BoC meeting (Wed). Markets have moved to price the July cut, but do not yet price enough dovishness from the BoC vs. the Fed for 2024 or for the total cutting cycle, in our view. We expect downward pressure on the CAD.”

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.