In its Business Outlook Survey (BoS) for the second quarter, the Bank of Canada (BoC) said that they saw continued improvement in business sentiment, per Reuters.
Additional takeaways
"BoS Indicator hits highest level on record at 4.17 from 2.95 in Q1."
"Firms tied to high-contact services are becoming more confident that sales will pick up as vaccination rates rise, suggesting an important broadening in recovery ahead."
"Most firms report an improvement in their sales prospects from a year ago."
"Indicators of capacity pressures and labour shortage intensity have increased."
"Plans to invest and hire staff are widespread as firms prepare to meet unexpected sales increases suggests broadening of labour market recovery."
"The number of firms with improved indicators of future sales is at a record high, signalling broad-based strengthening of demand versus a year ago."
"Balance of opinion on future sales growth dips to 47 in Q2 from 52 in Q1."
"Businesses expect wages, input prices and output prices to grow at a faster pace than a year ago."
"Firms’ inflation expectations increased but most drivers of inflationary pressures are viewed as temporary."
"BoC Q2 Survey of Consumer Expectations says expectations for 1-year ahead inflation have increased but consumers expect this increase to be temporary."
Market reaction
This report doesn't seem to be having a significant impact on the CAD's performance against its major rivals. As of writing, the USD/CAD pair was up 0.35% on the day at 1.2361.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD extends the retreat to near 0.6650 as US Dollar finds footing
AUD/USD is back in the red, testing 0.6650 in Friday's Asian trading. A renewed US Dollar uptick undermines the pair, even as risk sentiment remains in a sweeter spot. However, the downside appears limited amid the RBA's hawkish stance and hopes for more Chinese stimulus could act as a tailwind for the Aussie.
USD/JPY drops back below 153.00 after Japan's verbal intervention
USD/JPY drops back below 153.00 early Friday, snapping the rebound. Japanese verbal intervention outweighs the upbeat market mood and the post-Fed US Dollar rebound, exerting a fresh bearish pressure on the pair. US sentiment data is next in focus.
Gold price slides back below $2,700 mark amid modest USD strength
Gold price met with a fresh supply and eroded a part of the overnight recovery gains. The Trump trade optimism revives the USD demand and weighs on the precious metal. Retreating US bond yields and bets for additional Fed rate cuts could help limit losses.
BTC touches new all-time high near $77,000 following Fed rate cut
Bitcoin price rallied and reached a new all-time high of $76,849 following the US Federal Reserve’s 25 basis point rate cut. Ethereum and Ripple followed suit and closed above their key resistance levels, hinting at a possible rally ahead.
Outlook for the markets under Trump 2.0
On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.