We're still expecting one more rate increase and I think this probably should not have too much of an impact overall.
The business conditions survey is going to take center stage for Canada, maybe in particular because the Canadian dollar seems to be playing an important role in the Bank of Canada's thinking now.
Today's number might represent some upside risk to that.
The main factor behind the Canadian dollar appreciation is likely the expectation of tomorrow's Bank of Canada statement accompanying the widely expected hike.
There's very little direction. Everyone's tuning into (the payrolls figures) especially since the Fed has been talking about watching incoming data for guidance on how they're going to move in March.
I think the next interest rate increase is pretty much anticipated. We (forecast) another interest rate increase coming right after that as well, we think this is pretty supportive of that.
Basically whatever high level of investment there last year, there will be even more this year. But we have some good gains in other areas too.
It looks like the Canadian dollar has really recovered. Part of the reason has to do with the commodity story.
The overall tone of the report is pretty mediocre at this point.
They probably will not explicitly (address it.) But there are several ways in which they can bring that up and talk about it in terms of global risk and the adjustment to international terms of trade, or...that inflation has been coming in lower than expected.
