Yesterday, the Bank of Canada announced that it would decrease its amount of weekly bond purchases from a floor of C$5 billion to C$4billion. Rightfully, the market did not interpret this adjustment as a firming of monetary…
Highlights Global Duration: US Treasury yields have started to creep higher and the move is likely to continue in the coming months regardless of who wins the White House. Reduce overall global duration exposure to below-benchmark,…
The Bank of Canada’s Autumn Business Outlook Survey was released earlier this week. While the headline conclusion was that business sentiment remains weak, firms’ investment intentions imply a positive surprise to…
We noted in a late-September insight that another wave of COVID-19 had begun, but that this wave was less deadly than before. We highlighted that the incremental mortality rate, defined as fatalities over the past 30 days as a…
Recent headlines related to the Canadian housing market have been upbeat. Last month, the Canadian Real Estate Association (CREA) reported a 6.2% month-over-month increase in August national home sales, a 33.5% year-over-year…
BCA Research's Foreign Exchange Strategy service expects the loonie to touch 80-82 cents but underperform the Australian dollar, Swedish krona, and Norwegian krone. Go short CAD/NOK for a trade. The key reason for the…
The Canadian labor market continues to roar back to life. Canadian job creation rose from 246 thousand jobs in August to 378 thousand in September, which represents a marked beat relative to expectations of 150 thousand new jobs…
Highlights Currency markets remain vulnerable to the upcoming US election, Brexit, and a resurgence of Covid-19 infections. Meanwhile, President’s Trump suggested “piecemeal” fiscal deal increases the odds of a…
As expected, the Bank of Canada stood pat on the rate front yesterday. The BoC also reiterated its stance to keep borrowing costs at the effective lower bound until economic slack is absorbed and the 2% inflation target is…