Avery Shenfeld Canadian Quotations

We expect the combination of a U.S. growth moderation and the lagged impacts of a strong Canadian dollar on factory employment to do a lot of the work in engineering that cooling in Canadian hiring, leaving the Bank of Canada with only another 50 basis points in rate hikes.

It's oil and natural gas prices that move the hearts and minds of those following the Canadian dollar these days.

The warning bells are starting to ring, that the drag on manufacturing from the Canadian dollar . . . is starting to show through, now that the U.S. economy is starting to slow.

If markets felt the Bank of Canada was going to press on with rate hikes after the Fed stopped, that could fuel an overheated Canadian dollar, providing too much of a braking force on exports.