HIGHLIGHTS OF THE WEEK – August 8
• Markets adopted a risk-off bias earlier on in the week, fixated on the outcome of the much anticipated
“Super Thursday” Bank of England (BoE) announcement in the UK.
• The BoE did not disappoint, delivering a big stimulus package that included a cut to the key policy rate,
as well as several stimulus measures amounting to a combined total of £170 billion.
• Strong data stateside continued to support our view of resilient domestic strength. Nonfarm payrolls took
center stage at the end of the week adding 255k jobs in July. The resilience of the labor market provides
a strong case for a data-dependent Fed to move earlier than financial markets are currently pricing.
• Crude oil prices slipped below the US$40 per barrel mark this week, extending the downtrend that has
been in place over the last 6-8 weeks.
• Economic data disappointed this week, with Canada’s trade deficit widening in June. Exports volumes
fell for a fifth straight month, suggesting that net trade will be a drag on growth in Q2.
• The economy shed 31k jobs in July, pushing the unemployment rate up a tick to 6.9%.
For further information, please contact:
John Maveety Manager, Residential Mortgages – Greater Ottawa Area TD Canada Trust
T: (613) 371-1984 F: (888) 899-1984 P: (866) 767-5446