For the CAD traders, coming up from Canada on Monday, the BoC's Business Outlook Survey for Q4
- Due at 1530 GMT on Monday 8 January 2018
The Bank's monetary policy meeting is on January 17, and this report will be eyed for indications of change in the probability of a rate move, especially following the blockbuster jobs reports of November and December. From Friday:
- USDCAD tumbles after back to back 79K job gains
- USD/CAD craters after sizzling Canadian employment report
- Canada December employment +78.6K vs +2.0K expected
RBC on what they are looking for in today's report:
- Although it was a partial retracement from the historically strong Q2 report, the last BOS saw solid readings for the balance of opinion on future sales (+19), M&E Investment (+17), and employment intentions (+34).
- Moreover, more intense labour shortages and an elevated proportion of firms having difficulty meeting demand, as well as higher inflation expectations, suggested that capacity pressures may be biting.
- As always, commentary from firm interviews and the overall tone from the BoC should be at least as important as the statistical results.
