Eric Lascelles
Eric Lascelles
canadian confront continues elevated fact including input muscular prices report sector spectrum testament wide
(The report is) a testament to the fact that the Canadian manufacturing sector continues to confront a wide spectrum of challenges, including elevated input prices and a muscular Canadian dollar.
business canada continues grow moderate sector
The business sector in Canada continues to grow at a moderate pace.
notable word
The most notable (change) is the insertion of the word 'modest.' And that's been interpreted in a dovish fashion.
auto few hesitant last mind quite sales shipments tend wildly
Keep in mind that auto shipments and sales tend to be quite volatile. They've been really going up and down pretty wildly over the last few months, and so I'd be hesitant to read too much into any one reading.
market report responding spots weak
There are some weak spots in the report and that's what the market is responding to.
bank beyond canada canadian closely continued employment huge increase interest labor number rates shows sit strength supports whether
There is huge strength in employment ? It shows continued strength in the labor market, which supports the Canadian dollar. The Bank of Canada may look closely at this number and sit up and think about whether they should increase interest rates further. There is probability they may go beyond 4 percent.
bank closely favorite quite sit
We've been told before that this is the Bank of Canada's favorite measure. So, the Bank of Canada, without question, is going to sit up quite closely and look at this release.
both companies forward rough time tough troubles workers
Clearly, many of these automakers are encountering pretty substantial troubles and I think it is going to be a tough time for both the workers and the companies going forward - we'll just have to see how rough it is.
cautious expected hike intent looking rate vein
The intent of that, in my view, is to say they are very cautious about looking forward. A rate hike should not be expected in the same vein that one was expected for today.
certainly election impact minority
I don't think there has been much of an impact at all from the election because, certainly a minority was expected, a minority was the outcome.
bank canada cause differ likely peak percent
I don't think this is going to cause the Bank of Canada to differ in its ways. We still think 4 percent (overnight rate) is the likely peak for them.
alive canadian continue economy positive
The Canadian economy is alive and well and will continue to grow. This will be near-term positive for the Canadian dollar.
canadian dollar gone
The Canadian dollar has gone through the roof.
commodity
The commodity play is a big part of the story there.