Market Wire, North America

Canadian headline inflation decelerated again last month, and the underlying price indicators followed most closely by the Bank of Canada continued to weaken – helping clear the way for a rate cut in June. Data released by Statistics Canada this morning showed the Consumer Price Index rising 2.7 percent on a year-over-year basis in April, down from the 2.9 percent increase recorded in March, and closely aligned with consensus expectations. On a month-over-month basis, prices increased 0.5 percent. Shelter costs again provided the biggest lift, with rents climbing 8.2 percent year over year, while mortgage interest costs rose 24.5 percent....

The Canadian economy generated more jobs than anticipated in April, helping reduce market expectations for an imminent pivot toward easier monetary policy from the Bank of Canada. 90,000 new positions were added in the month and the unemployment rate held at 6.1 percent in March. Consensus estimates had pointed to 20,000 new hires, with elevated population growth and still-high participation rates pushing unemployment to 6.2 percent. The services sector generated most of the gains, but gains were widespread, with professional, scientific and technical services, accommodation and food, health care and social assistance, and natural resources industries offsetting modest losses in...