- Analytics
- News and Tools
- Market News
- Canada: Downside surprise on CPI should take some pressure of BoC – TDS
Canada: Downside surprise on CPI should take some pressure of BoC – TDS
Assessing the latest inflation data from Canada, economists at TD Securities think that the downside surprise on Consumer Price Index (CPI) should take some pressure off the Bank of Canada.
We will continue to watch risk assets
"Headline CPI surprised to the downside with an 8.1% print in June, falling short of the market consensus for 8.4%, with prices up 0.7% m/m. Details revealed a sharp deceleration in rents and food prices, although positive revisions to May left the average of the BoC's core inflation measures sitting at a new high of 5.0% y/y."
"We would not interpret this as a soft print, but the BoC should be relatively pleased to see inflation miss to the downside after the last few months. However, with inflation continuing to firm on a year-ago basis we do not expect the Bank to take its foot off the gas too much ahead of the September policy decision, especially with core inflation continuing to grind higher."
"FX: The downside surprise on CPI should take some pressure off the BoC but we don't see it moving the needle for CAD. We will continue to watch risk assets, with CAD the most correlated to equities across the FX complex."
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
