The Bank of Canada raised the policy rate by 100 bps on Wednesday, beating expectations of a 75bp hike. This move brings its target for the overnight rate to 2.5% and the central bank indicated that more hikes are coming.…
Executive Summary Our recommended model bond portfolio outperformed its custom benchmark index by +24bps in Q2/2022, improving the year-to-date outperformance to a solid +72bps. The Q2 outperformance came entirely from the credit side…
The Bank of Canada’s Q2 Business Outlook Survey reveals that businesses expect intense price pressures to persist. The share of surveyed firms that expect input prices to increase significantly over the coming 12 months…
Executive Summary China: GeoRisk Indicator A new equilibrium between NATO, which now includes Sweden and Finland, and Russia needs to be reestablished before geopolitical risks in Europe subside. Russia aims to inflict a…
Canadian retail sales were surprisingly resilient in April. They grew by 0.9% m/m on a seasonally adjusted basis from an upwardly revised 0.2% m/m in March. Ex-auto sales grew by 1.3% m/m from an upwardly revised 2.6% m/m in…
As expected, the Bank of Canada raised its key overnight interest rate by 50bps to 1.5% on Wednesday, its second consecutive half-point hike. The post-meeting statement highlighted that at 6.8% in April, CPI inflation exceeds…
Listen to a short summary of this report. Executive Summary US Financial Conditions Have Tightened Significantly This Year US financial conditions have tightened by enough that the Fed no…
Listen to a short summary of this report. Executive Summary EUR/JPY And The DXY: Unsustainable Gap Three interrelated themes are likely to play out by the end of 2022 – peak Fed hawkishness,…
Executive Summary Global inflation will peak sometime in the next few months, a process that has likely already begun in the US. This will give policymakers some breathing room to turn less hawkish, a more credible stance given…
Listen to a short summary of this report. Executive Summary The Dollar Likes Volatility Uncertainty about Fed policy has supercharged volatility in bond markets, and correspondingly, USD demand (Feature…