BoC: BOS to reveal upbeat assessment of business conditions - TDS

Analysts at TDS suggest that the Bank of Canada’s Business Outlook Survey for Q4 is the lone event on the calendar and they expect the BOS to reveal an upbeat assessment of business conditions and a continuing recovery in the resource sector.

Key Quotes

“After noting that activity had bottomed out by Q3, capex plans for energy producers have affirmed that view with many slated to increase investment in 2017. The BOS may also provide colour into manufacturing sentiment in response to protectionist measures being floated in the US. We also look for any commentary relating to the auto sector, which has come under great scrutiny by the President-elect.”

“US: Nothing to report on the data front which will leave attention focused on the two Fed speakers. Rosengren and Lockhart are both scheduled to deliver an economic outlook and it will mark the first time either has spoken publicly since the December FOMC. While neither is a voter in 2017, it will be informative to hear each’s opinion on the main factors driving upside risks to inflation.”