“While the report alone is not going to be enough to prevent a 25 basis-point hike by the Bank of Canada next Tuesday, if the core trend is not turned around in the first couple of months of the new year, there will be a strong argument against further tightening.”
“It's a wake-up call for the bond market, ... The bond market was nervous to begin with that the goldilocks scenario wasn't panning out, and this report appears to confirms that.”
“We can attribute some of last month's decline to the rise in the Canadian dollar and increased concern among companies as to the impact this will have on export penetration and earnings, but at the end of the day the Ivey has never been a valued directional indicator because of its volatility and desks may partially dismiss the decline as a result.”
“There's probably broad agreement within the Tory party for that. There's no concrete details on that, but you get the impression that Conservatives would probably support that as well. Obviously, the Liberals would support it because it's their program.”
“While the recovery above the break-even threshold is a relief, it remains well back of the highs set in the fourth quarter and we would suspect that the appreciation in the Canadian dollar is restraining optimism.”
