Stock markets applauded the most recent reshuffling from the Trump administration on Friday as White House Chief Strategist Steve Bannon, a supporter of protectionist measures and right-wing policies, was dismissed. This change opens the door to a more centrist President Donald Trump and could take the edge off of NAFTA negotiations.
Inflation data released on Friday sent the loonie soaring, with our currency gaining close to 0.77% during the trading session. Inflation in Canada continues to firm up, and met the expectations of the economists polled. The underlying trend for inflation confirms that excess capacity is down and supports our economists’ opinion that the Bank of Canada will raise interest rates in October.
This week, we’ll be keeping an eye on Canadian Retail Sales data for June as well as the first round of NAFTA talks. Moreover, the annual meeting of central bankers in Jackson Hole, Wyoming later this week will also garner attention.
Mark Donohue
Range of the day : 1.2530 -1.2630