Markets Rally as CPI Relief Spurs Risk-On Sentiment; Commodities Hit 2-Year High

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.4260-1.4460

Euro                 1.4670-1.4890

Sterling            1.7430-1.7650

WTI Oil (opening level) $79.56

The CAD is opening at 1.4376 ( 0.6956)

KEY POINTS

·    Equities: Broad rally, S&P 500 +1.83%, Nasdaq 100 +2.4%, Dow +1.65%. Bank earnings (JPM, WFC, GS) beat expectations

·    Volatility: VIX drops 13.8% to 16.12, sharp decline in short-term measures (VIX1D -39%). CPI relief drives risk-on sentiment

·    Digital Assets: Bitcoin $99,794 (-0.7%), Ethereum $3,380 (-2.1%), XRP $3.1171 (-0.82%). Altcoins pull back after recent rally

·    Currencies: USD fights back after post-US CPI USD plunge. JPY strong across the board.

·    Commodities: Sector at two-year high led by strong gains across energy and metals

·    Fixed Income: US treasuries send global yields sharply lower after soft core CPI release yesterday.