15 Mar 2016
CAD: The spring bear hunt – Scotiabank
Derek Holt, Research Analyst at Scotiabank, suggests that in Canada, a significant data risk and a provincial budget may incrementally impact markets at least temporarily, but with two complicating factors.
Key Quotes
“One is that most of it lands in the second half of the week and so it will be difficult to ascertain a Canada-specific effect beyond other grander issues such as the FOMC on Wednesday. Two is that this will be the week before the Federal Budget on March 22nd and the Bank of Canada’s incorporation of its effects in the April 13th statement and forecasts.
Most meaningful Canada-centric debates may therefore be in a bit of a holding pattern this week — with the possible exception that the economy is rebounding rather smartly in Q1 with very early tracking evidence.
We expect the balance of this week’s data to continue to illustrate a generally resilient Canadian economy.”
Key Quotes
“One is that most of it lands in the second half of the week and so it will be difficult to ascertain a Canada-specific effect beyond other grander issues such as the FOMC on Wednesday. Two is that this will be the week before the Federal Budget on March 22nd and the Bank of Canada’s incorporation of its effects in the April 13th statement and forecasts.
Most meaningful Canada-centric debates may therefore be in a bit of a holding pattern this week — with the possible exception that the economy is rebounding rather smartly in Q1 with very early tracking evidence.
We expect the balance of this week’s data to continue to illustrate a generally resilient Canadian economy.”