Inflation isn't out of hand anyway in Canada. The market may think the Bank of Canada will move less aggressively. It will be a surprise if the bank moves beyond 4 percent.
Basically, it's the same underlying picture and certainly supportive of the monetary policy action they've been undertaking.
(The survey) certainly continues to suggest that the Bank of Canada need not be concerned about inflationary pressures arising from manufacturers.
It's hard to imagine that individual month-to-month figures are going to have much bearing.
This report was largely in line with expectations. It was a grim report.
Perhaps part of the story for the Canadian dollar is the bump in oil prices and these wholesale numbers, but that's not all that evident in the fixed-income market.
We certainly do think there are another two (rate hikes) left in the Bank of Canada before they tag out.
The most notable (change) is the insertion of the word 'modest.' And that's been interpreted in a dovish fashion.
The Bank of Canada may look closely at this number and sit up and think whether they should go further. There is a probability they may go beyond 4 percent.
We did have a weak University of Michigan confidence index ... but on the flip side, you had the producer price index, which came in a little strong.