Right now their guidance has been clear... they don't appear overly alarmed by this. |
The impact of an overvalued currency is starting to become more apparent ... the Bank of Canada may have to reconsider its assessment of how much the dollar is acting as a drag. |
The U.S. deficit is growing faster than someone who spent too much time at the all-you-can-eat buffet. |
There's probably broad agreement within the Tory party for that. There's no concrete details on that, but you get the impression that Conservatives would probably support that as well. Obviously, the Liberals would support it because it's their program. |
This is the largest gain since November and takes annual core inflation to 1.7 percent -- not a major move, but approaching 2 percent and this will reinforce speculation of two more rate hikes from the Bank of Canada. |
We are hitting the consumer with headwinds that we have not witnessed on record. |
We are now seeing the lags from currency appreciation kick in, alongside more uneven growth south of the border. |
We can attribute some of last month's decline to the rise in the Canadian dollar and increased concern among companies as to the impact this will have on export penetration and earnings, but at the end of the day the Ivey has never been a valued directional indicator because of its volatility and desks may partially dismiss the decline as a result. |
While the recovery above the break-even threshold is a relief, it remains well back of the highs set in the fourth quarter and we would suspect that the appreciation in the Canadian dollar is restraining optimism. |
While the report alone is not going to be enough to prevent a 25 basis-point hike by the Bank of Canada next Tuesday, if the core trend is not turned around in the first couple of months of the new year, there will be a strong argument against further tightening. |
Why should the bank raise rates again in March? There's no reason. |