You should see Canada's 10-year bonds rally in the second half of this year. I don't see a big appetite on the part of the Bank of Canada to hike interest rates as the economy slows. There is no compelling reason to go beyond 4 percent.
Most importantly, the Bank of Canada is not giving the impression that it has much of an appetite for further rate hikes beyond the 4 percent level.
The weakness in the Canadian dollar is essentially a follow-through from yesterday's Fed rate decision that has the market anticipating at least one more hike.
This may be partly a commodity price story.
If we end up with a majority government you could see a bit of a rally in the currency but it would be short-lived. Canada's economy is comfortably in surplus and that backdrop isn't going to change, no matter who wins.
Real exports are poised to take a bite out of Canada's growth performance for the first quarter as a whole.
They said nothing's changed in their view of the economy so markets focused on the word 'modest' to mean they'll be less aggressive.
It'll be a pretty big increase. It means a lot for consumers and their pocketbooks, obviously - it's going to squeeze their spending power.
The strength of today's report certainly will not be lost on the Bank of Canada ... as a result, we still believe the odds favor another rate hike from the bank in April.
Currently, the Canadian dollar has been on a tear, an absolute tear. It's been massively outperforming other currencies.
