Despite solid growth, inflation is quiet which is reflected in low bond yields. Paul Ferley More Paul Ferley Quotes 0
The Canadian dollar is doing fairly well this morning, in part because of a generally weak U.S. dollar. Canada is also being helped by oil prices remaining high, as a result of political instability in a number of the producing areas. Paul Ferley More Paul Ferley Quotes 0
The day saw some offsetting developments with strength evident in U.S. housing starts and the Philadelphia Fed index and in Canada, a stronger than expected manufacturing shipments report. Paul Ferley More Paul Ferley Quotes 0
The labor market is getting too tight, so the Bank of Canada may have to raise the rate more aggressively to keep inflation from taking hold. Higher interest rates get investors to buy the Canadian dollar. Paul Ferley More Paul Ferley Quotes 0
Markets are probably waiting for the announcement by the Bank of Canada tomorrow to get a sense of the characterization of the near-term outlook for policy: whether they'll flag they're poised to move to the sidelines or whether they're still contemplating further rate hikes. Paul Ferley More Paul Ferley Quotes 0