Canada Economics Weekly Core inflation revisions won’t change Bank’s thinking The CPI-trim and CPI-median measures of core inflation will be revised up next month but that does not change our view that they will fall sharply over the first half of this year. We think the 25 bp... 20th January 2023 · 4 mins read
US Housing Market Data Response Existing Home Sales (Dec.) The modest fall in existing home sales in December suggests the impact of the spike in mortgage rates last year has largely washed through. The recent fall in mortgage rates has helped to lift... 20th January 2023 · 2 mins read
US Commercial Property Update Investment set for weak H1 before picking up in late-2023 We expect the slowdown in investment activity in the second half of 2022 to persist into the first half of 2023. But we think transactions will begin to recover later this year once interest rates... 20th January 2023 · 3 mins read
Event Canada Drop-In: Is this the end of the Bank of Canada’s tightening cycle? 1674666000 Join Paul Ashworth, our Chief North America Economist, Stephen Brown, who leads our Canada coverage, and Jonathan Peterson, Senior
FX Markets Update Taking stock of the outlook for the US dollar With inflationary pressures easing and the global growth outlook improving, we no longer expect the US dollar to breach its late September peak. But we still think that souring risk appetite... 20th January 2023 · 4 mins read
Canada Data Response Retail Sales (Nov.) Retail sales edged down in November but the preliminary estimate of a 0.5% m/m rise in December, despite the double-digit fall in gasoline prices, implies that sales volumes rose sharply at the end of... 20th January 2023 · 3 mins read
US Economics Weekly Activity data take a turn for the worse The weakness of retail sales and manufacturing output over the final two months of 2022 has reignited market fears of a hard landing this week, with the Fed’s latest Beige Book acknowledging that... 20th January 2023 · 8 mins read
Capital Daily Shift in the US stock-bond correlation might be here to stay We expect the negative correlation between the returns from Treasuries and US equities that followed yesterday’s poor batch of economic data to continue through to the spring, as inflation continues... 19th January 2023 · 6 mins read
US Economics Update Fed returns to its 1990s reaction function The Fed’s hawkish transformation has been so marked that, if its forecasts are to be believed, over the next couple of years it would effectively be adopting the same reaction function last followed... 19th January 2023 · 5 mins read
US Housing Market Data Response Housing Starts (Dec.) Single-family housing starts surprised on the upside in December. But it is too soon to call the bottom of the market. Indeed, another substantial fall in permits means we think starts are set to... 19th January 2023 · 2 mins read
US Chart Pack Weakness spreads to the hard activity data First came the inversion of the yield curve. Next the index of leading indicators began to fall. Then the survey-based activity indicators plunged well below the 50 mark. Finally, this week we learned... 19th January 2023 · 10 mins read
Bank of Canada Watch A smaller 25 bp hike with a hawkish message The Bank of Canada is set to raise interest rates by a smaller 25 bp next week. While many will be looking for clues that this will be the end of the tightening cycle, the key risk to market pricing... 18th January 2023 · 7 mins read
Capital Daily Dollar and yen may benefit from weak global economy The latest signs that the US economy is losing momentum seem to have driven a risk-off mood in markets today, with equities struggling and the safe-haven US dollar and Japanese yen reversing earlier... 18th January 2023 · 5 mins read
US Data Response Industrial Production (Dec.) The manufacturing sector appears to be in recession and, even if China’s emergence from its Covid restrictions provide some boost later this year, the deterioration in the survey evidence suggests the... 18th January 2023 · 2 mins read
US Data Response Retail Sales (Dec.) The 1.1% m/m fall in retail sales in December, which followed a downwardly-revised 1.0% fall in November, adds to the evidence from the surveys that the economy was losing momentum towards the end of... 18th January 2023 · 2 mins read
