Strategists at TD Securities have emphasized the relevance of the upcoming BoC’s Outlook Survey, due next week. “While the balance of future sales is forecast to remain subdued at +10, the focus will be on future investment intentions and evidence of credit tightening in the resource sector”. “A deterioration on either front or a pullback in hiring intentions (which have remained more upbeat that we would have expected) would be consistent with a weaker outlook that will create more spare capacity and ultimately demand more accommodation”. “With the focus squarely on growth, questions on inflation arguably matter less to the Bank given the transitory nature of the depreciation in the exchange rate”.