While the housing downturn will be fairly mild in the US, it will be more severe abroad. Continue to favor bonds of countries whose housing fundamentals will limit rate hikes.
This week, we look at the latest data releases in the G10, along with implications for all the major currencies.
In this Strategy Outlook, we present the major investment themes and views we see playing out next year and beyond.
The pandemic gave older Americans and Brits a massive carrot and stick to retire early. The carrot being a surge in wealth, the stick being a risk to health. In other major economies, the carrots and sticks were smaller or non-…
As expected, the Bank of Canada lifted the overnight interest rate target by 50bps to 4.25% at its Wednesday meeting. The post-meeting statement was less hawkish than the October version. In particular, although it mentioned that…
Canada’s exports and imports grew by 1.5% m/m and 0.6% m/m respectively in October, causing the trade surplus to widen to a larger-than-expected CAD 1.21 bn from a downwardly revised CAD 607 mn in September. Nearly three…
According to BCA Research’s Foreign Exchange Strategy service, there are four fundamental reasons to position for higher energy prices that will support the Canadian dollar. The US is becoming the marginal supplier of…
Commodity currencies have been rather resilient, despite the broad rise in the dollar this year. In our view, we are about to experience a big rotation in commodity currency market performance at the crosses, from NZD, to CAD and…
Canadian equities outperformed their US counterparts in local currency terms on a YTD basis. The S&P/TSX decreased by 4%, against a 16% decline for the S&P 500. Sector composition largely explains this outperformance.…