MNI: Canada Mortgage Growth At Lowest Since 2001 At 3.3%

FED: POWELL TESTED POSITIVE FOR COVID-19, HAS SYMPTOMS

MNI China Daily Summary: Friday, May 17

MNI BRIEF: China Cities Must Ensure Housing Project Delivery

MNI BRIEF: PBOC Sets A New Tool To Bail Out Property Sector

MNI BRIEF: PBOC Abolishes Lower Housing Mortgage Limit

MNI: BAKER HUGHES US RIG COUNT 604; OIL RIGS 497; GAS RIGS 103

Canadians Buy Record CAD35.6B In Foreign Securities In March

MNI: FOREIGN HOLDINGS OF CANADA SECURITIES +14.4B CAD IN MAR

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

TD On Potential Divergence In BoC and Fed Monetary Policy

CANADA
Homepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets Bank of Canada Market News
  • With the BoC moving closer to easing, TD “believe the Bank can diverge from the Fed by at least another 50bps before rate differentials and a softer loonie start to play a larger role in the BoC's deliberations.”
  • “In our base-case for rate cuts to start at the July policy decision that would suggest that continued resilience in the US economy is unlikely to derail the BoC before October.”
  • “In a scenario where stronger economic conditions force the Fed to stay on hold beyond September (not our base case), it would introduce upside risk to our forecast for USDCAD to hit 1.41 by Q4”.
  • “That would leave the Bank balancing the risks of further CAD depreciation on a cut to 4.25%, or holding rates unchanged at 4.50% to take some pressure off the currency and give more time for the Fed to catch up.”
143 words

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.
  • With the BoC moving closer to easing, TD “believe the Bank can diverge from the Fed by at least another 50bps before rate differentials and a softer loonie start to play a larger role in the BoC's deliberations.”
  • “In our base-case for rate cuts to start at the July policy decision that would suggest that continued resilience in the US economy is unlikely to derail the BoC before October.”
  • “In a scenario where stronger economic conditions force the Fed to stay on hold beyond September (not our base case), it would introduce upside risk to our forecast for USDCAD to hit 1.41 by Q4”.
  • “That would leave the Bank balancing the risks of further CAD depreciation on a cut to 4.25%, or holding rates unchanged at 4.50% to take some pressure off the currency and give more time for the Fed to catch up.”