From panic to tragedy
Brexit continues to dominate headlines and panic took hold of financial markets Thursday. Investors sought shelter in the U.S. dollar and yen while stock markets and crude oil prices were under pressure. The USD/CAD pair rose from 1.2900 to 1.3080 in the morning when panic turned to drama. At lunchtime, the tragic murder of anti-Brexit British MP Jo Cox brought an icy silence to trading floors. The pound sterling and the euro immediately recovered a portion of their lost ground. The referendum campaign was suspended and the vote scheduled for next week may be pushed back. It’s now difficult to predict where the loonie is headed in this uncertain context but one thing is certain, volatility is here to stay in the short term.
Today, we’ll be keeping an eye on Canadian inflation numbers for May, which will be released at 8:30. An increase is expected further to the recent rebound in energy prices.
