Financial institution of Canada Cuts Once more, U.S. Election Race Stays Tight – AGF Views

Writer: The editor’s desk

July 24, 2024

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A mid-week evaluation of what’s occurring in international monetary markets from the attitude of AGF’s funding administration workforce.

Dove Story

The Financial institution of Canada grew to become the second developed market central financial institution to ease coverage at two consecutive conferences: in the present day they minimize their coverage price to 4.5% from 4.75% as anticipated and struck a dovish tone. The accompanying set of forecasts present an improved trajectory of inflation (declining sooner) in addition to a extra modest price of GDP development. We expect the Financial institution of Canada is firmly in rate- reducing mode, absent any surprising upside inflation surprises. Market response was muted as this was largely anticipated and in concord with looser financial coverage expectations globally.

Conference(al) Considering?

Kamala Harris might go away the Democratic Nationwide Conference in Chicago subsequent month with a modest lead within the U.S. presidential race that persists by way of Labour Day. That might doubtless be a wake-up name for traders anticipating the “Trump trade,” however then the battle may get vicious, with Trump probably shifting again right into a slight lead in October. The November 5 final result is just too near name.

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Commentary and knowledge sourced from Bloomberg, Reuters and different information sources until in any other case famous. The commentaries contained herein are supplied as a common supply of knowledge based mostly on data accessible as of July 24, 2024. It isn’t supposed to handle the wants, circumstances, and targets of any particular investor. The content material of this commentary is just not for use or construed as funding recommendation, as a proposal to purchase or promote any securities, and isn’t supposed to counsel taking or refraining from any plan of action. Each effort has been made to make sure accuracy in these commentaries on the time of publication, nevertheless, accuracy can’t be assured. Market circumstances might change and AGF Investments Inc. accepts no duty for particular person funding choices arising from the use or reliance on the data contained herein.

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