CAD: What to Look for in the BoC's Business Outlook Survey - TDS
David Tulk, Head of Global Macro Strategy at TDS, suggests that the BOS is an important input into the Bank's interest rate deliberations and we look to the April survey to gauge the durability of the recent rebound in economic data.
“Oil has recovered from its lows but remains generally rangebound. CAD has rebounded due to higher oil prices and broad-based weakness in the USD as expectations for Fed hikes have been unwound. Conditions in the Canadian economy have also improved, with evidence to suggest that non-energy exports have resumed their assent. Against this backdrop, we look to the BOS—which was conducted between the middle of February to the middle of March—to shed some light on the themes of future activity intentions, regional composition, currency challenges, inflation expectations and credit channel."
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