Uncertainty on markets
Markets are not fans of uncertainty and the upcoming Brexit referendum in the United Kingdom is dishing it out in spades. The most recent survey by a British newspaper shows a 10-point advance in favour of the Leave side, sending the pound sterling plunging 1.4% and swinging markets into the red on Friday. This bearish trend appears to be continuing on Monday morning, although the loonie is holding its own and remains relatively stable against the USD.
Closer to home, the Canadian economy delivered a surprising performance in terms of jobs, with 18,000 new positions created in May, easily surpassing the expected reading of 2,000. Bank of Canada Governor Stephen Poloz will no doubt avoid a key rate cut to maintain course in domestic job creation in the months to come.
The main event this week will be the Federal Reserve’s interest rate decision on Wednesday and the press conference thereafter. A neutral decision is widely expected following the poor recent job creation in the U.S. economy. Our thoughts are with the victims of the attack in Orlando and their loved ones.
