The greatest thing since sliced bread.
The first commercial production and sale of pre-sliced bread burgeoned this day, 89 years ago by a Baking Company in Chillicothe, Missouri. It was a roaring success, but was banned in 1943 in order to conserve the extra wrapping materials used to ensure sliced bread didn’t turn stale. The public outcry was enormous, the ban didn’t even last for two months before being rescinded.
The week in review
The US dollar is ending the week on a high note, after falling to the lowest levels since October just last week. This characterized what we saw through the first half of the year – a weaker USD, making this week’s rally a breath of fresh air.
The minutes from the Federal Reserve’s most recent meeting came through this week, but they yielded almost no new information. Policymakers are divided on both the outlook and what to do about it. They maintained their intention to raise rates once more this year despite inflation being well below their target. Overall, there was a very wait-and-see feel in the details of the discussions going on at the Fed.
After disappointing private payrolls pushed the dollar lower Thursday, a surprise increase in the nonfarm payroll report led a USD recovery. The monthly report showed the US added 222,000 jobs in June, with a positive revision for the month prior to boot.
Japanese yen was one of the hardest hit this week, down 1.8% against the greenback. The pound, Swiss franc, and Australian dollar all fell around a percent against the USD.
Canadian dollar had a bumpy ride this week, but is one of the few major currencies to beat the dollar over the last five days. An upside surprise to the employment picture in Canada drove gains on Friday, with the economy adding 45,000 jobs – more than quadruple what analysts expected.
Many investors are expecting the Bank of Canada to raise rates for the first time since 2010 when they meet next week, which could keep CAD underpinned.
Have a great weekend.