This wasn’t entirely unexpected given the hot economic data that’s been coming in fast and furious over the past couple of months, but it is extremely notable coming after the July hike.
To be sure, whatever you thought was going to dominate the news flow in the week ahead is probably going to take a backseat to North Korea, for obvious reasons.
But North Korea isn’t the only thing on traders’ minds this week. Not by a long shot.
Maybe you noticed.
So for the third week in a row we get to say “congratulations Canada!”
Now just hope that epic housing bubble doesn’t burst.
Y/Y, Canada’s economy grew by 4.6% in the 12 months through the end of May. That’s the highest growth rate since the millennium!
And thus ends one of the most painful chapters in the history of spec positions gone horribly wrong.
Ok, well this should be an interesting week. We’ll get the BoC, which will make Bloomberg’s Luke Kawa happy because it means Canada will be in the spotlight for once. He’s got some fun Canada-themed socks we imagine he might wear on Wednesday. “The recent avalanche of hawkish messages from the BoC, as well as…
“I find it funny how with all this printing, market participants are surprised when the price of assets rise.”
SocGen’s Kit Juckes probably summed up the overnight session best: Overnight currency drivers have been a pretty eclectic collection of unrelated developments. That sounds like it could be an ill-advised sequel to “A Series Of Unfortunate Events“: “A Pretty Eclectic Collection Of Unrelated Developments.” First there’s the kiwi which collapsed. That comes courtesy of the…
“Doesn’t really help us that much, except to note that maybe all this other analysis is bullshit, and instead we should just focus on crude oil and interest rates.”
Yeah, so it turns out that exiting the European Union is probably going to be “bloody” hard for Britain. Who knew? And it’s made even harder by the fact that Theresa May is promising to be a “bloody difficult woman” throughout the protracted negotiations. So you know, this is a lot like what’s going on…
Ok, so as detailed earlier this morning, the first thing you should note about the overnight session was the action in the loonie and peso following Donald Trump’s decision to avoid ripping apart NAFTA (for the time being). You can read the full story on that with some additional color from FX trader Mark Cudmore…
“It doesn’t really matter. For a while, investors will assume the rot spreads deeper than just one company. The entire Canadian real estate sector will now be guilty until proven innocent.”