Author: Robert Jessi

Canada’s financial services sector, long characterised by stability and concentration among a handful of large banks, is undergoing a decisive digital transformation. Over the past 18 months, a confluence of regulatory reform, infrastructure modernisation and fintech innovation has begun to reshape how money moves, how data is shared and how consumers interact with financial institutions. The result is not merely incremental change, but the foundations of a more open, competitive and technology-driven system. The most significant shift has been the long-awaited arrival of consumer-driven banking, more commonly known as open banking. After years of consultation, the federal government confirmed in…

USD The dollar fell for a second day on Wednesday, with the index closing 0.4% lower near 100.5, now down almost a percent since Tuesday’s CPI report. Having firmed through the London morning, the greenback reversed once June PPI confirmed the prior disinflation signal, factory-gate prices falling 0.3% MoM against a flat consensus, with the annual rate easing to 5.5% and core also undershooting. Chair Warsh welcomed data moving in the right direction in his Senate testimony, while resisting any suggestion of an all-clear on inflation, and the Beige Book’s slight-to-moderate growth assessment did little to challenge a dovish repricing…

NZD/USD fluctuates between minor gains and losses on Thursday as the Reserve Bank of New Zealand’s (RBNZ) hawkish stance supports the Kiwi, while a stronger US Dollar (USD) caps the upside. At the time of writing, the pair trades around 0.5842 after climbing to a one-month high earlier this week.The Greenback is regaining its footing after a two-day decline triggered by softer-than-expected US inflation data. The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, trades around 100.70 after falling to 100.35 on Wednesday, its lowest level since June 18.From a technical perspective,…

US continues attacks on Iran – BoC left rates unchanged, delivered upbeat outlook – USD is trading sideways awaiting US retail Sales numbers. USDCAD open: 1.4041, overnight range 1.4034-1.4054, close …

Good morning. I’m pleased to be here with Senior Deputy Governor Carolyn Rogers to discuss our quarterly Monetary Policy Report and today’s decision. Governing Council maintained the policy interest rate at 2.25%. We have three key messages. First, after stalling over the past year, economic growth looks to have resumed in Canada. While US trade policy continues to be a headwind, consumers have been resilient and businesses are adapting. Second, inflation in Canada is poised to ease gradually provided global oil prices decline from elevated levels. Third, uncertainty remains elevated. The conflict in the Middle East has re-escalated in recent…

 Big moves are becoming the norm in this market, and currency is no exception. Our Canadian dollar (CAD) has traded down to 70 cents on the dollar. This is only a penny or two away from the extreme lows of Covid (when everyone was hiding in USD/Treasuries) and Tariff Day (remember when tariffs were going to push Canada into a bone crushing recession?). Too extreme? Let’s bring it in.Our initial thoughts on this weakness was that is a Canada problem. Oil prices came down from $92/bbl to $70/bbl in June 2026, and we are still somewhat of a petro currency.…

SpaceX selloff an ominous sign as lockup expiry looms

By Erik Hertzberg (Bloomberg) — The Bank of Canada held interest rates steady for a sixth consecutive meeting as policymakers see the economy rebounding and oil price-driven inflation fading.  Officials led by Governor Tiff Macklem kept the policy rate at 2.25% on Wednesday, matching expectations of economists in a Bloomberg survey and traders in overnight swap markets. “After a year of weakness, Canada’s economy is showing signs of improvement,” the bank said in its monetary policy report. “Growth is expected to pick up, and inflation eases gradually from its recent peak. Uncertainty is still high.” The bank said in its…

Gold (XAU/USD) attracts fresh sellers during the Asian session on Thursday and drops back closer to the previous day’s swing low, around the $4,025 region in the last hour. Despite soft US Consumer Price Index (CPI) and Producer Price Index (PPI) reports, elevated crude oil prices keep the possibility of a US Federal Reserve (Fed) interest rate hike later this year firmly on the table. This offers some support to the US Dollar (USD) and drives flows away from the non-yielding bullion.The US Bureau of Labor Statistics (BLS) reported on Wednesday that the PPI unexpectedly fell 0.3% in June after…

USD The dollar is on the back foot this morning, with the near 100.8 after falling nearly half a percent on Tuesday. The move lower came largely in response to June CPI, which showed headline prices easing -0.4% MoM, a much sharper decline than the -0.1% anticipated by economists. That leaves the annual inflation rate at 3.5% YoY, down from 4.2% in May, while core eased to 2.6% YoY with a flat monthly print. As we noted in our reaction piece, though, Chair Warsh’s concurrent testimony leaned hawkish, stressing that a single favourable reading would not change the outlook, helping…