header header
With your host Hank Cunningham
Search   GO



Blog Entry

Daily Market Commentary

Rates around the world seem to be on the upswing now.  The ECB hiked this morning to 4%, the BoC and BoE expected to hike at their July meetings.  Even the Fed continues to talk hawkish in the face of strong employment and sticky CPI.


It appears the cost of money is going up around the world.


Bonds this morning started unchanged after the widely expected ECB release, and continue mixed after an inflationary release on US unit Labor costs (up 1.8% for Q1).  This puts the US 10 year just below the psychological 5% mark, bringing up all kinds of technical implications, depending on which way you want to draw the lines on your chart.  Fundamentally, strong economic data (like yesterdays 59.7 ISM non-manufacturing) and strong employment data continues to push these yields higher. 


  We may see a flight to quality as it's looking like some jittery equity investors this morning will be looking for safer places to put their cash.


The CAD$ had a small setback yesterday - peanuts in comparison to the gains we've seen recently, but one of the first down days for the Loonie since mid-May.


<< Back to Blog Entry Index




2006-2019 Copyright. In Your Best Interest. All rights reserved. Privacy Policy. RSS Feed.