If energy prices remain high for long enough, there is a risk that they would bleed into underlying inflation.
I think there's more (potential) for moves with the U.S. dollar.
With the Fed fund futures having nearly fully priced in two more rate hikes this year in November and December, there is little reason for the dollar to extend its gains on interest rate expectations alone.
All in all, commodity prices are higher and we're seeing some strength in the Canadian dollar.
The more emphasis on the Canadian dollar, the earlier the bank is going to stop raising rates. The Canadian dollar's appreciation is something the market is concerned about; the bank may be less aggressive.
(There was) confusion about what the heck they meant. The market thought it was good (for the U.S. dollar), then they had second thoughts about it.
The Canadian dollar will bounce up and down, following crude oil. Declines in oil are negative for the Canadian currency.
Most of the gains came from part-time employment. That pulled down the Canadian dollar. People are less bullish.
The narrowing of deficit obviously helped the U.S. dollar rally across the board. There is more indifference about the Canadian number. We are seeing people buying the U.S. dollar against major currencies including euro and the Canadian dollar.
The rift, if not civil war, within the Liberal party also presents an almost Herculean task for any new leader.
