- BOC Minutes: Governing Council considered waiting until July to cut rates
- US June NAHB housing market index 43 vs 45 prior
- Canada's population continues to surge as it hits 41 million
- ECB's Centeno: ECB will cut if disinflation process continues
- Canada May Teranet house price index +0.5% m/m
- US MBA mortgage applications w.e. 14 June +0.9% vs +15.6% prior
Markets:
- Gold down $2 to $2326
- Canada 5-year yields up 3.6 bps to 3.32%
- WTI crude oil down 10-cents to $81.47
- AUD leads, NZD lags
- Toronto TSX down 0.5%
The US was closed for holiday and the market was predictably quiet, even before Europe left for the day.
There were some bids in USD/JPY as the pair crept back over 158.00, perhaps owing to reports of problems at a bank in Japan. The broader theme was mild US dollar strength in North American trade but the moves were minor and might have been no more than the usual ebb and flow.
The Canadian dollar strengthened early in the day but then gave most of it back. Market pricing suggests a 65% chance of a cut next month but the minutes highlighted a preference to move more slowly. Macklem scheduled a speech for June 24 so that and Friday's retail sales report will be the next opportunity to adjust.
It was tough to detect an overall risk trade but European and Canadian equities were lower and the kiwi slumped late in the day. Personally, I wouldn't read much into anything without the US in the mix.
