It seems like the black clouds over Toronto won’t go away. Fortunately, the sunshine came into my family’s life as we celebrated my beautiful niece’s Graduation. As my sister was stuck in traffic, she summoned me to pick up the food from Terroni restaurant on Price Street, located in the Yonge and St. Clair corridor. My youngest daughter accompanied me to stay in the car as I picked up the order. 

Consequently, it was rush hour, and I hadn’t been in the uptown downtown area for a long time. The lunacy of sustainability and Net-Zero initiatives has transformed the City of Toronto into a parking lot. As cars spew fumes into the air, and our carbon footprint increases because some yoyo believes carbon emissions are destructive, we remain stuck in bumper-to-bumper traffic, in a single lane. Car owners got to cheer the single bike rider pass everyone in the newly built bike lanes, which cost millions of dollars, thus making his/her journey remain unabated while our jaws drop in disbelief. 

Meanwhile, as I look to the left, I see a bike owner riding on the sidewalk amongst the pedestrians, as the bike lane remains unused. My blood pressure went through the roof! Even drinking organic celery juice and taking cayenne pepper couldn’t keep my blood from boiling! When is enough going to be enough of this absolute stupidity? 

Speaking of challenges, the world has been set ablaze. The shift in ideology, from the far-left to Center-right, and from globalization to a more protectionist approach has seen different countries affected in different ways. 

The imposition of tariffs has been a major factor in creating uncertainty in trade and employment. As a result, the lack of consumer confidence creates hesitation in the decisions people make with respect to major purchases. Uncertainty results in concern for maintaining employment and the ability to afford things. 

Recently, the Canadian unemployment rate hit 7%, with job losses escalating and a housing crisis and affordability issues mounting. Too many people are shifting the debt burden to credit facilities to relieve the pressure. Consolidation of debt is becoming more difficult as the price of real estate is also falling. As a result, even consolidation loans, which were easier in the past because of rising real estate markets, are becoming more difficult if income qualifications aren’t also met. 

The markets witnessed some big numbers this week coming out of the U.S.A., as the Consumer Price Index (CPI) rose to 2.4% expected (2.5%) in May. Excluding food and energy, the CPI rose to 2.8% versus expected (2.9%). Core CPI only rose 0.1% below the forecast (0.3%). This result continues to cause trepidation between the Federal Reserve and the Administration with respect to when interest rates should be lowered. 

Then, the Producer Price Index (PPI), also a reflection of inflation, came in at 2.6% versus expected (2.4%). Ex-food and energy, it was 3.0%, yet down from the expected (3.1%). Then, Weekly Jobless Claims came in slightly elevated at 248k from the previous week. Ultimately, the results will be translated and interpreted by those who make decisions. 

Reflective of the data, the USD Index slipped below the 98.0 level, weakening the USD further. The expectation for a rate cut is growing to not only provide stimulus to the equity markets but also act as a catalyst to weaken the USD further, making US goods more competitive abroad. 

Consequently, early morning, Israel unleashed a military strike on Iran targeting their military and nuclear facilities. This sent the USD Index back above the 98.0 level, and as is in times of uncertainty, the USD becomes the safe-haven. 

Keep in mind, a China-U.S.A. trade deal is imminent, and this could see the USD surge once announced. On the other hand, Precious Metals continue to rise as the USD comes under pressure. Gold is above the USD$3400/oz level once again, and Silver remains firm above the USD$36/oz range.