The Daily Canuck 20.07.2026

Research evidence excerpt

The Daily Canuck 20.07.2026

Canada | Financials EquityJulyResearch20, 2026

Figure 1 - Canada Net Inflow/Outflow ofThe Daily Canuck 20.07.2026

Investments in Securities (in C$ billions)

With the Bank of Canada staying on the sidelines last week, we get the first post $80$60

$40announcement indication on where rates could be heading with inflation data

out today for May. Unless there is a surprise, we do not expect today's release $20$0

to materially impact expectations. ($20)($40)

. Apr-23 Oct-23 Apr-24 Oct-24 Apr-25 Oct-25 Apr-26

Source: Statistics Canada, Jefferies

What you need to know:

Last Friday, Statistics Canada reported that Canada posted a $14.4B net outflow in May as•

Canadian investors purchased $22.3B in foreign securities while foreign investors bought

$7.9B in Canadian assets. Foreign inflows declined sharply from April, with strong demand for

bonds and money market instruments offset by a $16.1B equity selloff. Canadian investors

focused on US markets, buying equities (+$11.0B), especially technology shares, and US

corporate bonds (+$11.0B), while continuing to divest US government bonds. The outflow

reflects a shift toward foreign investments and weaker foreign demand for Canadian equities

despite rising domestic stock prices.

On the macro front, June inflation data will be released later today, while retail trade data will•

come out on Thursday.

Headlines

Temporary relief in gas prices expected to pull inflation back below 3% in June Yesterday, The

Canadian Press reported that Canada’s inflation rate is expected to drop to about 2.8% to 2.9% in

June from 3.2% in May, mainly due to a 10% decline in gasoline prices. Despite the dip, inflation

pressures remain stable, with food prices still elevated near 3.6%. Rising geopolitical tensions could