May's end-of-month flows were wild but directionless – and the first week of June is packed of top-tier events that may shape trends for weeks.
June kicks off with a packed economic calendar, promising high volatility in markets. The ECB and the BoC are widely expected to cut interest rates. A long buildup to Nonfarm Payrolls includes the JOLTs report, which could steal the show. May's end-of-month flows were wild but directionless – and the first week of June is packed of top-tier events that may shape trends for weeks.
Why? First, the decision is fully priced in. Second, BoC Governor Tiff Mackelm will likely reject expectations of a series of rate cuts, given the still-strong economy and the reluctance of the Fed to slash borrowing costs. Canada is highly dependent on the US. The BoC's move will likely reverberate beyond the Loonie – it comes one day before the ECB decision and a week before the Fed. Markets are watching. 5) ISM Services PMI may cool markets and shape NFP expectations Wednesday, 14:00 GMT.
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