Bank of Canada

Bank of Canada Survey Shows Improvement

The latest Bank of Canada Business Outlook Survey reveals that overall, businesses remain positive over the outlook for the economy over cumming next 12 months, even after factoring in a less aggressive US recovery outlook. Future sales and investment indicators are higher. There is also a consensus out of Western Canada that sales will rise going forward, but at the same time, firms report that any increase in demand will be hard to meet. As far as output prices are concerned the view is less pronounced than for input prices, while inflation expectations remain unchanged.
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The latest Bank of Canada Q2 Senior Loan Officer Survey shows that business lending conditions have been generally positive, with the balance of opinion for lending on both the price and non price side of the equation showing the greatest degree of consensus on the topic of easing since the inception of the survey in 1999.

Canadian dollar was unmoved as US dollar strength was the dominating theme yesterday which saw the Canadian dollar lose the most ground against the buck in a month. If US dollar strength continues to dominate, oil continues to ease amid growth concerns and risk remains off we could see an assault being mounted on parity. A topside failure ahead of parity will keep things range bound.