Currency Market Price Action Slows, Canadian Inflation Eases
A sense of calm has descended upon global financial markets as the data cadence slows, geopolitical developments settle to a dull roar, and monetary policy expectations stabilise. Benchmark Treasury yields are almost unchanged relative to yesterday’s open, equity futures are pointing to another day of incremental gains, and measures of implied currency volatility remain low—even across short-term tenors that include Friday’s hotly-anticipated speech from Federal Reserve chair Jerome Powell. Here in Canada, inflation pressures subsided more than expected last month, slightly raising the likelihood of a rate cut in early 2026. Data released by Statistics Canada this morning showed the...