Feeling like I just came out of confession, there are many decisions in a society that affect us all. Seemingly we feel helpless when things are imposed upon us. People in general feel productive by making decisions for themselves without the dictation of an authoritarian body. After all wouldn’t you know what’s best for yourself? The most notable decision upcoming is that of money, the money we earn, transact, invest and above all spend to meet our individual needs which hopefully provide fulfillment.

A digital currency alternative will soon be thrust upon us. Be aware of what is pending upon society in the form of Central Bank Digital Currencies (CBDCs). They are government-issued currencies that aren’t pegged to a physical commodity. They will be issued to support financial services for a nation’s government and its commercial-banking system, set monetary policy and issue currency. TD Bank the largest retail bank in Canada will be the first to try and impose this on its customers. Supposedly, one will not be allowed to access their banking online if you don’t comply. Ask the questions needed to satisfy that your rights aren’t being trampled on.

Today, the main focus in society, regardless of all the evilness taking place, is that of inflation as the bogey-man.  It has been a deliberate consequence of mismanagement and a result of excess spending by governments themselves. Billions have been sent abroad, specifically to Ukraine to fight a proxy war while needs in our own countries have been neglected.

The Bank of Canada (BOC)  was on the docket yesterday and decided to leave interest rates on hold.  The Bank rate remains @ 4.5%. A little reprieve from the devastation imposed especially on those who may have purchased homes at the bare minimum and locked into a variable rate. Promises, promises, promises never to be believed especially if the government makes them because they will never keep them. The BOC remains fixated on bringing inflation toward the (2%) level, even though they have been enabling the existing leadership to spend without accountability or transparency.

The USD Index opened the week above the 102.60 level initially giving rise to the USD. Let’s face it, nothing will be a straight line and volatility will remain consistent.  The focus and spotlight were on the USA CPI data measurement of inflation. The result showed that Inflation indeed slowed to 5% in March but core consumer price gains accelerated.

Inflation slowed amid a sharp drop in gasoline prices and further moderation in food costs. But an underlying inflation measure that better reflects long-term trends accelerated as another surge in rent and a rebound in used car prices rebound. Consumer prices increased 5% from a year earlier, down from 6% in February and a 40-year high of 9.1% last June. This is reflective of the US economy as it remains the bellwether of trends as now the 2nd largest economy in the world. 

Even though The Fed is expecting to increase rates another 0.25% come May,  if inflation scales down as it supposedly has, then the Fed can actually reverse the trend and start lowering rates from the damage they have caused. The effect would be a sharper downturn in the USD with currencies rising more aggressively in this case scenario.

Today, momentum continued to build as the USD Index dipped below the 101.0 level. The data suggests inflation is coming down but I personally beg to differ. Jobless Claims rose to 239k vs expected (232k) a lot more than when below 200k a few weeks ago. The effects of the policy are starting to grip.

Annual PPI data comes in lower at 2.7% in March vs (3%) expected. Precious Metals are booming as Gold is above $2040/oz and Silver approaching $26/oz on the weak USD. On the other hand, Oil is close to $83/barrel and currencies are rising overall, especially the Euro vs USD.