Well apparently, it’s not Canada’s economy that matters one bit to markets. A simultaneously released measure of US employment costs stole the show. The result was that Canada’s shorter-term market yields followed the US higher and CAD depreciated by half a penny to the USD post-data on both sides of the border. Markets are interpreting another hot sign of US inflationary pressures from the labour market as added reason to forget about the Fed easing any time soon which makes it more challenging for the BoC to deliver material easing—even if it proves to be warranted which remains highly debatable. US Employment ... (full story)