Free Trial

Outlook and Recap

  • With only a 5Y GoC auction for local events, US CPI at 0830ET is likely the main driver of Canadian assets.
  • Recap: Speaking yesterday to a business audience, BoC’s Macklem focused on the need for greater business investment to enhance productivity growth. The near-term mon pol outlook was similar to recent comments with the rising rate path seen necessary suggesting multiple increases (the need for ultra-low rates has passed), but the BOC is not on auto-pilot.
  • Further out, rates could go above neutral (modelled at 2.25% with a 1pp range centred on it) for a time, but equally new headwinds could mean “maybe we don’t get all the way back to the neutral rate”, whilst emphasizing the uncertainty around estimates.
  • Continued disruption on the Ambassador Bridge (which carries 25% of Canada-US trade), with Ford and Toyota halting some production as a result.

To read the full story



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.