The Canadian Dollar has been one of the better G10 performers this year. Economists at ING analyze CAD outlook ahead of the release of the quarterly Business Outlook Survey.
CAD to continue to perform well – as should the Mexican Peso
One important input into the BoC's decision will be today's release of the quarterly Business Outlook Survey. This will help the BoC better understand both business inflation expectations but also the environment for corporates to be able to push higher prices onto consumers. With Canada's unemployment rate still relatively low by historical standards, corporates may still see opportunities to push on higher prices or restore profit margins. Let's see.
In general, we expect the Canadian Dollar to continue to perform well (as should the Mexican Peso) and today's outlook survey could help to see the Canadian Dollar withstand US Dollar strength better than some
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