Canadian October business outlook survey likely to give glimpse into BoC’s assessment of conditions

Canada’s Business Outlook Survey for October is set to be released next week. According to a TD Economics Research, the Autumn Business Outlook Survey is expected to give one last glimpse into the BoC’s assessment of conditions ahead of the October MPR, although the market might be reluctant to infer too much from the results given the timing of the survey.

For the last autumn’s BOS, consultations were conducted between August 24 and September 19, which would place 2018’s consultations before the breakthrough on NAFTA.

“Nonetheless, we expect firms to maintain an upbeat tone on continued strength in foreign demand and a pickup in domestic conditions. Capacity pressures should remain in the spotlight which may give the report a slightly hawkish tilt, while any dated references to trade uncertainty should emphasize the need to “get on with (investment),” to paraphrase the Governor”, added TD Economics.

At 19:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was highly bearish at -141.988, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -67.612. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex