Free Trial
CHINA RATES

China Repo Rates Diverge On Friday

US TSYS

Looking Though China PMIs

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

TD Above Consensus For CPI

CANADA
  • TD see headline CPI inflation easing from 8.1% to 7.8% Y/Y (cons. 7.6%), with the main M/M drag from gasoline falling nearly -8% and wiping 0.3pps from headline.
  • Expecting a stronger performance across ex food & energy, with large contributions from shelter and recreation. Despite that, average core to hold at 5.0% with “a relatively high bar for CPI-trim/median to move higher in July” on slowing momentum and larger base effects with CPI-common only +0.1pp to 4.7%.
  • FX: “A moderation in CPI should help the market price in peak hawkishness by the BOC. USDCAD dips are a buy and we think legging into topside around the BOC meeting is compelling.”
  • Rates: Big surprises will drive relative Can-US performance. Tactically "gearing up for Sep 1st index-driven demand, which should trigger a meaningful supply-demand imbalance in conjunction with no 30y nominal auction this August month-end”.
140 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • TD see headline CPI inflation easing from 8.1% to 7.8% Y/Y (cons. 7.6%), with the main M/M drag from gasoline falling nearly -8% and wiping 0.3pps from headline.
  • Expecting a stronger performance across ex food & energy, with large contributions from shelter and recreation. Despite that, average core to hold at 5.0% with “a relatively high bar for CPI-trim/median to move higher in July” on slowing momentum and larger base effects with CPI-common only +0.1pp to 4.7%.
  • FX: “A moderation in CPI should help the market price in peak hawkishness by the BOC. USDCAD dips are a buy and we think legging into topside around the BOC meeting is compelling.”
  • Rates: Big surprises will drive relative Can-US performance. Tactically "gearing up for Sep 1st index-driven demand, which should trigger a meaningful supply-demand imbalance in conjunction with no 30y nominal auction this August month-end”.