The US economy appears to be re-accelerating here in Q2 after nearly grinding to a halt in Q1 (0.5% annualized pace).
In addition to the swinging pendulum of market expectations for the Federal Reserve, which has a new chair (and will likely usher in a new era for the central bank), UK political drama that appears likely to bring down Prime Minister Starmer added to the pressure on sterling and UK stocks and bonds.
With last week's advance, the Dollar Index has recouped a little more than half of what was lost in the pullback from the year's high set on March 31.
There is a US dollar-driven move now, and the USD-CAD exchange rate's rolling 60-day correlation with changes in the Dollar Index has eased from the near 0.80 seen in March, the highest since July 2024, but above 0.60 is still fairly strong for it.
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The US economy appears to be re-accelerating here in Q2 after nearly grinding to a halt in Q1 (0.5% annualized pace). April US CPI and PPI were more elevated than expected. The anticipated average effective Fed
