The market is 95% priced in for a Bank of Canada rate cut but the country's largest bank says it's unnecessary. Now I strongly suspect they will flip that call by the time Wednesday rolls around -- particularly if core inflation dips in tomorrow's Canadian CPI report -- but they're staking out some interesting territory at a time when the market (and myself) are increasingly worried about Canada.
Q2 GDP was weak, but July trade and manufacturing gains plus stronger early Q3 data point to a rebound RBC card spend tracking suggests consumer demand holding up (there should be a new report this week)Housing showing early signs of life (August sales rose y/y in data released today)88% of exports still tariff-free under USMCAFiscal supports ramping up, layoffs limited
The big risk they see is a further US slowdown but highlight that the Bank of Canada -- at 2.75% currently -- has ammunition to cut if the economy slows.
The Canadian dollar is the strongest G10 performer today as it gets a lift from rising gold prices but USD/CAD has traded in a 200-pip range for the past six weeks. The daily chart looks like it could be cooking up a head-and-shoulders top with a target of the lows of the year. The pairs has fallen nearly 10 full figures since the start of the year.
This article was written by Adam Button at investinglive.com.Hence then, the article about why rbc remains upbeat on canadian economy sees no boc cut was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Why RBC remains upbeat on Canadian economy, sees no BOC cut )
Also on site :