FXStreet (Guatemala) – Analysts at TD Securities noted that there will be a lead up to the Bank of Canada’s September rate decision.
Key Quotes:
“For a fully data-dependent central bank, the release of Q2 GDP and July international trade will be key inputs into the September rate decision. For GDP, we expect an annualized growth rate of -0.8% which is just shy of the Bank’s -0.5% forecast presented in the July MPR.”
“We expect that some of the strength reported in the June trade balance will be unwound in July (deficit forecast to widen to -$1.4 billion) but will look beyond the nominal headline to assess the momentum in non-energy export volumes.”
“A respectable advance paired with only a modest miss on Q2 GDP will likely give the Bank enough comfort to pause in September given the offsetting impact of lower oil prices with the depreciation in the CAD and the slide in bond yields. The August employment report (TD: +10k, unemployment rate: 6.8%) will provide more noise than signal and not have an influence on the Bank’s decision.”
(Market News Provided by FXstreet)