Bank of Canada battles Canadian shoppers 🛍🤺

YAS! It’s throw it back Thursday! 💃🏼

Ohhhh it’s ‘Throwback’?

Oh well. I like mine better.

Only have a minute? ⏱

Trade Of The Day 📈

Bank of Canada Battles Canadian Shoppers 🛍🤺

Canada... that was a little out of character don't you think? 🤨

The Bank of Canada increased interest rates by 25 basis points after the rate of 4.5% had stayed the same all year. Now at 4.75%.

Now the key interest rate is the highest it’s been since 2001.

C'mon! Why'd they do that?

Apparently monetary policy was not restricting us enough and we were still shopping too much. Demand in the Canadian economy was a lot higher than they anticipated.

So the Government stepped in.

If Canadians keep spending a bunch of money, prices will never go down.

Japan's Economic Recovery: Is The Party Over Before It Started? 😬

Japan's economy is definitely on the mend.

In the first quarter GDP grew at an annualized 2.7% from the previous quarter, better than we thought!

Good job Japan for avoiding a technical recession. 🥳

Businesses were investing more and customer spending was picking up!

So is it only up from here?

Inflation will be key in determining how sustainable this recovery is going to be.

If wages fail to keep up with rising prices, it could hurt consumer spending and slow down the recovery.

And this might already be in the works. 😕
 
In April, wages were falling and household spending fell with it. Higher prices might be starting to steer people away from the stores.

Australian Surplus Takes A Hit 👊🏼

Australian exports were down in April so that trade surplus was not as big as we expected.

It came in at 11 billion instead of the 14 billion that was predicted. This made the surplus drop to its’ weakest level since last summer.

Side note: Do y'all know how big a BILLION actually is?

To put it into perspective; if you saved $100 a day every single day, it would take you over 27,000 YEARS to save a billion dollars.

Crazy right? Ok. Moving on.

Australian exports fell 5% in April from March mostly due to a decrease in the exports of metal ores, minerals, and coal.
 
When I first saw ‘ore’ I thought they were exporting these things:
 

But that’s an ‘oar’ apparently. Ores come from mines. My bad!
 
Anyway, the decline is widely stemming from the slow economic growth in China which is Australia’s largest export destination. 🇨🇳

Imports were up 2% from March but that didn't save the trade balance from knocking 0.2% off of the Australian GDP.

Friday News

A few words from Canada before market closes tomorrow.

Here’s what you’re in for:
(All times in EST)

• 08:30 — A Million New Canadians Impact The Job Market 🇨🇦

  • Event: Net Change In Employment (May) & Unemployment Rate (May)

  • Major pairs to watch: USDCAD

New Canadians And The Job Market 🇨🇦

Time to find out how many of my fellow Canadians found jobs in May. ⛑

While 41,000 new jobs were added to the economy in April, the unemployment rate remained at 5% as more than 47,000 people continued to look for work. 🔎

The consensus for May is 23,200 jobs added and an unemployment rate of 5.1%.

Expect USD/CAD ↑

After Canada's population grew by over a million people in the past year, we’ve got more people on the job hunt.

But new Canadians aren’t struggling to get their hands dirty with jobs being added to the economy 8 months in a row. 🙌🏾

However, not all those positions are full-time gigs!

Most of those 41,000 jobs were part-time. Canada actually lost 6,200 full-time roles - but that wasn't necessarily a cause for alarm among those who found part-time positions instead.

Only one in six individuals actually gave a damn saying they preferred full-time work instead; most seemed perfectly content with their reduced hours. 🤷‍♀️

Technical Tip

Want to backtest your strategy?

Use the replay tool on TradingView!
 
You can remove all price data up to the date (historical) that you want & begin reviewing the chart. Here is a tutorial on how to use it.