6 Apr 2015
Downside risks to Canadian domestic indicators – RBS
FXStreet (Barcelona) - The RBS Team previews the key Canada data to be released in this week, expected a downside surprise in employment numbers, and remaining bullish on USD/CAD.
Key Quotes
“Both the January GDP report and the trade deficit in Canada were moderately stronger than expected, but underlying growth remains weak and we see downside risks to Canadian domestic indicators, including employment figures released on Friday.”
“The BoC appears to be comfortably in wait-and-see stance until more 2Q data is released, though we expect the data and lower oil prices to challenge that neutral stance. We retain our long held bullish USD/CAD view.”
“The Bank of Canada’s first quarter Business Outlook Survey and Senior Loan Officer Survey are key indicators for the BoC – a further dip in business confidence may also challenge the BoC’s view that the economy will rebound in the second quarter after oil-induced weakness in 1Q.”
Key Quotes
“Both the January GDP report and the trade deficit in Canada were moderately stronger than expected, but underlying growth remains weak and we see downside risks to Canadian domestic indicators, including employment figures released on Friday.”
“The BoC appears to be comfortably in wait-and-see stance until more 2Q data is released, though we expect the data and lower oil prices to challenge that neutral stance. We retain our long held bullish USD/CAD view.”
“The Bank of Canada’s first quarter Business Outlook Survey and Senior Loan Officer Survey are key indicators for the BoC – a further dip in business confidence may also challenge the BoC’s view that the economy will rebound in the second quarter after oil-induced weakness in 1Q.”