Canada is in a soft patch for inflation but let’s not get carried away. Markets largely shook it all off as CAD strengthened a touch versus the USD and the 2-year yield climbed 2–3bps partly in sync with the US front-end at the same time. We have two months of evidence across two of the three main core inflation measures and there are still worrisome underlying details to emphasize. For now, it’s encouraging, but we’re a long, long way from the BoC pulling out the pom-poms. To do so would be like the Blue Bombers declaring victory in the Grey Cup twelve seconds before the end of the Grey Cup. There is still of game ... (full story)