USDCAD Strength and Tech Sell-offs: Navigating the Market Rotation

The market is working through a heavy dose of macro data and corporate transitions. On the macro front, inflation pressures remain sticky in the US, with May CPI printing at 4.2% YoY against the 4.0% forecast, accompanied by PPI MoM coming in hot at 1.1% vs 0.7% expected. This inflation stickiness has kept the Fed hawkish and yields elevated, leading to visible rotation out of high-flying technology names. Meanwhile, the ECB delivered a 25 basis point rate hike to 2.40% under President Lagarde, addressing persistent services inflation [1][2], while the Bank of Canada held its ground at 2.25% but actively flagged global trade…