This morning’s data shows Canada still on solid ground confirming the Bank of Canada’s comments that things are going ok, but not great. That being said, the BoC’s upcoming problem will be to whether it will follow the U.S. Federal Reserve when it cuts interest rates in September or not. The chances of a Bank of Canada match at the Oct. 30 meeting jumped above 50 per cent Tuesday, up from about 25 per cent last week, according to data compiled by Bloomberg. This goes against the grain of the BoC, who has stated that the next rate move will be higher rather than lower. If the BoC leaves rates unchanged then the critics would say the BoC is putting in an uncompetitive advantage by allowing the CAD to get stronger, definitely a no-win situation.
Currently Close Range
USDCAD 1.3373 1.3415 1.3362-1.3431
EURCAD 1.5101 1.5053 1.5032-1.5147
GBPCAD 1.7000 1.7021 1.6983-1.7069
Prior Actual
CA: Merchandise Trade April $-2.3 B $-1.0 B
Ivey PMI May 56.7 61.8
US: International Trade April $-51.9 B $-50.8 B
Jobless Claims wk6/1 218 K 218 K
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