Tag: inflation

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Sask. event businesses taking financial hit due to inflation, gas prices

Sask. event businesses taking financial hit due to inflation, gas prices


As the country faces record high inflation and high gas prices, some Saskatchewan businesses in the event and wedding industry are taking a hit.


Trystan Meyers is the owner and operator of Armed with Harmony, a DJ service in Saskatoon, and says contracts for events are signed one or two years in advance, not anticipating the cost of everything going up.


“It’s really hard to be able to go back to retroactively say ‘well now this is actually the price of the service you’re getting’ or the costs associated with that,” Meyers told CTV News.


He says it’s “frustrating” because the price for simple things they use every day like microphone batteries and tape for cords are rising in price.


Meyers says his business is eating the cost as they want to remain reputable and have a good relationship with their clients.


“It’s definitely affecting our bottom line and having two years of COVID also affecting our bottom line before that, makes it quite challenging just to survive as a business,” he said.


Owner of RSVP Event Design Crystal MacLeod says “it’s been tricky” as she didn’t see inflation and high gas prices coming to this degree.


“At this point, we’ve just had to eat the cost and honour the contracts that were signed in some cases, three years ago because of postponements due to COVID,” MacLeod said.


MacLeod says her business notices the cost when it comes to gas for getting to and from events, picking up and delivering items, and shipping costs for new items.


“As a small business owner, you’re always worried. It’s such an up and down experience,” she said.


While RSVP Event Design is the busiest it’s been in 23 years, MacLeod says it’s due to postponed events from the pandemic. This summer MacLeod says most weekends are filled with two to three weddings.


Regardless of inflation and gas prices, MacLeod says she was already planning to raise rates by around 10 per cent and that it’s “necessary.”


As an event planner, MacLeod anticipates companies or couples can expect higher food costs for their event or wedding in the next year.


“I have found that people perhaps are just so excited to be gathering again they’re spending a little bit more money on things for their event that maybe they wouldn’t have considered before,” she said.


With the summer being completely booked up for corporate events and weddings, MacLeod says she’s never had to turn away as much business as she has in the last six months. She’s almost at the point where she’s getting close to capacity for 2023. 

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FX Week Ahead – Top 5 Events: Fed Rate Decision; Australia Jobs Report; BOE Rate Decision; BOJ Rate Decision; Eurozone Inflation Rate

FX Week Ahead - Top 5 Events: Fed Speeches; Canada, Eurozone, Japan, New Zealand Inflation Rates

FX Week Ahead Overview:

  • The Fed rate decision on Wednesday will likely keep volatility elevated throughout the week.
  • The BOJ rate decision on Friday has increased importance now that JGB 10-year yields have started to break through the 0.25% threshold.
  • Eurozone inflation data on Friday may only deepen concerns about fragmentation across European bond markets.

For the full week ahead, please visit the DailyFX Economic Calendar.

06/15 WEDNESDAY | 18:00, 18:30 GMT | USD Federal Reserve Rate Decision & Press Conference

Rates markets have evolved sharply in recent days, following the release of the May US inflation rate (CPI) on Friday. One week ago, 148-bps were priced-in through the end of 2022; at the start of this week, 201-bps are discounted through the end of the year. Markets believe the Fed will raise rates by 50-bps at their June meeting, but there are rising odds that a 75-bps or even a 100-bps rate hike will be levied. Fed Chair Jerome Powell’s press conference will be critically important, as recent data will likely provoke a significant change in the FOMC’s Summary of Economic Projections (SEP) as well. Heightened volatility across asset classes up to and through Wednesday afternoon should be anticipated.

06/16 THURSDAY | 01:30 GMT | AUD Employment Change & Unemployment Rate (MAY)

The Australian economy continues to add jobs at a relatively torrid clip, putting more pressure on the Reserve Bank of Australia to raise rates rapidly. According to a Bloomberg News survey, Australia added +25K jobs in May, dropping its unemployment rate from 3.9% to 3.8% in the process. The relatively good news may come at a needed moment for the Australian Dollar, which has been sucked into the maelstrom of a broadly risk-off market. The data will only further encourage the RBA to raise rates quickly in the second half of 2022.

06/16 THURSDAY | 11:00 GMT | GBP Bank of England Rate Decision

Despite BOE policymakers signaling at the May rate decision that they are equally concerned with downside risks to growth as they are with upside risks to inflation, rates markets have had a rethink in recent weeks. Since mid-May, amid signs that the rises in food and energy prices won’t relent anytime soon, rates markets have dragged forward BOE rate hike expectations for the remainder of 2022, a much needed source of support for the British Pound.

UK overnight index swaps (OIS) are discounting a 117% chance of a 25-bps rate hike in June (a 100% chance of a 25-bps hike and a 17% chance of a 50-bps hike). Rates markets are still pricing in a 25-bps rate hike at every meeting for the rest of 2022. But there has been a subtle shift: it’s a faster pace than what was expected in mid-May: the expected terminal rate for the BOE in 2022 now sits at 2.450%, up from 2.099% approximately three weeks ago.

06/17 FRIDAY | 03:00 GMT | JPY Bank of Japan Rate Decision

Bank of Japan rate decisions usually don’t warrant much consideration, but this time is different as the Japanese Yen has hit its lowest level versus the US Dollar since 1998: markets are starting to break the BOJ’s commitment to keeping the JGB 10-year yield capped at 0.25%. The forthcoming rate decision is loaded with risk, as one of two things can happen: one, the BOJ can recommit to keeping yields capped, which means the Yen will take another leg lower; or, two, the BOJ throws in the towel on its QQE with yield curve control policy, which could unleash a rampant rebound by the Yen. Regardless of the outcome, fireworks are expected.

06/17 FRIDAY | 09:00 GMT | EUR Inflation Rate (MAY)

The European Central Bank’s June rate decision proved to be a bit of a communication error, with ECB President Christine Lagarde fumbling questions on how bond market fragmentation will be handled in the coming months. But the die has been cast, so to speak: the final May Eurozone inflation rate (HICP) is due in at +8.1% y/y from +7.4% y/y, and the core reading is expected at +3.8% y/y from +3.5% y/y. What was previously a source of strength for the Euro – rising short-end bond yields across the Eurozone – has now turned into a source of weakness – rising long-end bond yields in the periphery – that could raise questions of fiscal stability in countries like Greece, Italy, and Spain.

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— Written by Christopher Vecchio, CFA, Senior Strategist

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What are the key global events markets will track this week?

Stock market, BSE, sensex, markets

Markets snapped their three-week winning run last week, marred by increased volatility, after the RBI hiked repo rate by 50 basis points and raised inflation target for FY23.


The sentiment weakened further as global markets tumbled ahead of the US Federal Reserve’s monetary policy meeting this week.





Meanwhile, last week the BSE Sensex touched a high of 55,832 early in the week, and thereafter drifted to a low of 54,206, and finally ended the week with a loss of 1,466 points or 2.6 per cent.


The NSE Nifty shed 2.3 per cent to 16,202, and the Bank Nifty dropped 2.2 per cent.


This week, all eyes will be on the US Fed’s two-day monetary policy meeting on June 14 and 15, where investors will track Fed chair Jerome Powell’s outlook on energy prices, inflation and economic recovery.


According to a Reuters poll, the US Fed is expected to hike interest rate by 50 basis points in June and July, with higher probability of a similar rate hike in September.


That apart, Bank of England and Bank of Japan are also slated to take interest rate decisions on Thursday and Friday, respectively.


Back home, markets will take note of crucial inflation numbers.


The Consumer Price Index-based inflation for May will be announced on Monday, followed by Wholesale Price Index-based inflation on Tuesday.


Technically, weekly trend for the Nifty has turned bearish with its 20-Weekly Moving Average slipping below the -.


The broader trend indicates that the index could slide towards 15,800 – 15,300 if the 50-pack index fails to cross 16,900 level.


Against this backdrop, the NSE Nifty may test its support at 16,000-mark, below which the next significant support is at 15,800.


Similarly, the BSE Sensex may swing in a range of 53,300 to 55,300, with support expected around 53,950 and resistance at 55,050.


Among individual stocks, Bajaj Auto will be in focus ahead of its board meet on June 14 to consider share buyback.


Besides, recently listed LIC India and Prudent Advisory will be on investor radar as the compulsory 30-day lock-in period for anchor investors will end on June 13 and June 17, respectively.

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FX Week Ahead – Top 5 Events: UK No-Confidence Vote; RBA Rate Decision; ECB Rate Decision; Canada Jobs Report; US Inflation Rate

FX Week Ahead - Top 5 Events: UK No-Confidence Vote; RBA Rate Decision; ECB Rate Decision; Canada Jobs Report; US Inflation Rate

FX Week Ahead Overview:

  • The RBA rate decision on Tuesday will produce another rate hike, while the ECB rate decision on Thursday will pave the path to one.
  • The May Canada jobs report is likely to produce another strong reading, giving the BOC more ammunition for further rate increases.
  • Incoming US inflation data are likely to only show modest signs of disinflation, potentially revitalizing Fed rate hike odds and thus helping the US Dollar.

For the full week ahead, please visit the DailyFX Economic Calendar.

06/06 MONDAY | 21:00 GMT | GBP Boris Johnson No-Confidence Vote

A series of missteps and public embarrassments – from ‘Partygate’ to being booed at a Jubilee event – UK Prime Minister Boris Johnson is facing a snap no-confidence vote late in the day on Monday. Prediction markets suggest that Johnson will survive the vote, but the margin of victory is key: while only 180 votes are needed to continue on as prime minister, anything fewer than 260 may be considered a sign of weakness. With a cost of living crisis growing day-by-day and by-elections showing the Tory party falling out of favor, Johnson’s time as prime minister may be running out, regardless of Monday’s outcome.

06/07 TUESDAY | 04:30 GMT | AUD Reserve Bank of Australia Rate Decision

The RBA surprised markets with a 25-bps rate hike in May, eschewing conventional wisdom that policymakers would wait until after Australian federal elections to begin their rate hike cycle. But with the Australian unemployment rate at multi-decade lows – below the RBA’s projected level for year-end 2022 – as well as inflation rates pressing higher, the RBA has decided that swifter action is needed. Another 25-bps rate hike is anticipated (bringing the main rate from 0.35% to 0.60%) and already discounted by markets. What matters to the Australian Dollar more than a rate hike is what the RBA says about the future: how many more rate hikes can be expected over the next few months. Forward guidance is key if the Aussie is going to continue its recent rebound.

06/09 THURSDAY | 11:45, 12:30 GMT | EUR European Central Bank Rate Decision & Press Conference

The gap between the ECB and other major central banks’ rate hike odds that defined much of 2022 continues to close. Rates markets continue to price in the first 10-bps rate hike in July, after the ECB announces an end to its asset purchase program at its June meeting this week (when new Staff Economic Projections (SEP) are released).But thanks to multi-decade highs in inflation pressures across the Eurozone (including in the bloc’s largest economy, Germany), rates markets are now discounting a 50-bps rate hike in December 2022, in what would be the largest single-meeting increase in rates since 2000.Elevated ECB rate hike odds continue to be reflected in the short-end of various European sovereign debt yields. It remains the case that rising short-end bond yields should prove supportive of the Euro.

06/10 FRIDAY | 12:30 GMT | CAD Employment Change & Unemployment Rate (MAY)

The Canadian economy continues to chug along, benefiting more than other developed economies from the recent surge in energy prices (energy accounts for roughly 11% of Canadian GDP). While inflation is a problem, the strength of the Canadian labor market is giving the BOC some reassurance that it can continue to raise rates without derailing the economic recovery. A Bloomberg News survey sees the May Canada employment change at +30K from +15K in April, with the Canadian unemployment rate on hold at 5.6%. These would be strong enough data points for the BOC to proceed with another 25-bps rate hike when it releases its next decision on July 13.

06/10 FRIDAY | 12:30 GMT | USD Inflation Rate (CPI) (MAY)

Headline US inflation rates will remain stubbornly high, even as core rates show signs of disinflation, thanks to ongoing elevation in food and energy prices. According to a Bloomberg News survey, the May US inflation rate is due in at +8.3% y/y, unchanged from April, while the core inflation rate is expected to subside slightly to +5.9% y/y from +6.2% y/y.

While 50-bps rate hikes are priced-in for both June and July, rates markets are slowly coming around to the idea that another 50-bps rate hike will be levied in September, when the Fed meets after the Jackson Hole Economic Policy Symposium.Rates markets are unconvinced that much more tightening will occur thereafter; only 148-bps worth of hikes are priced in through the end of 2022, potentially leaving the US Dollar at a relative disadvantage as other central banks begin to ramp up their fights against multi-decade highs in inflation pressures.

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— Written by Christopher Vecchio, CFA, Senior Strategist