What the Cut? Canada Cuts, Europe Next, and USA to Follow With Cooler Labor Data
In this mid-week report - Don and John discuss the policy rate action in Canada, pending action in Europe, and the expectation for cooler labor data on Friday. #MacroEdge
What the Cut? Canada Cuts, Europe Next, USA too (@DonMiami3, MacroEdge Chief Economist)
Good Wednesday evening everyone,
Glad we’ve made it this far in the week. Seems like it’s gone by quite quickly. Still plenty of data to be released for the remainder of the week (which we’ll discuss briefly below) - as well as the first rate cuts of a G7 member this cycle. The market continued to climb higher in the first half of the week on a lower 10Y (it really is that simple), and the tech index in particular has been sent soaring on daily highs in Nvidia. Going back to a discussion we had back in March - I think the 10Y continues to drive markets - and doesn’t spook things until employment weakens (10Y falls sharply), or inflation reappears (a later story). Employment is the story going forward in my opinion and a core contributor to why Canada and Europe are quick to get on the monetary easing train.
We’ll keep the report for this evening pretty short since we have a Redeye Friday, Labor Market Report on Saturday, as well as MacroEdge Radio #10 on Friday evening discussing the CRE market.
Next month we’ll be introducing MacroEdge One, covering global data for Canada, Oceania, and Europe - and current Ozone members will get access.
In this mid-week report, we’ll briefly cover:
> The Bank of Canada Cut and Implications
> Likely European Central Bank Cut
> Claims and Unemployment Data
