this is the daily Market Common by Rafi boyajian. I'm Maria. thanks for joining us. Rate hike the Bank of Canada became the second Central Bank to hike interest rates this week joining Australia's Reserve Bank and upping the battle against persistently High inflation more significantly Wednesday's 25 basis point hike marked an end to the bank of Canada's pause period that began in January policy makers in Western economies have been taken back by the consistent upside surprises in both the inflation and economic growth data however with the RBA and boc not only stunning markets with their policy responses this week but also by signaling they may not be done with rate increases investors have had a major wake-up call ahead of the fed's own decision in just under a week's time pricing for the FED funds rate in US dollar and Fed policy Futures markets has been very erratic lately as Traders are trying to outgas the FED on three fronts skipping a rate rise in June hiking and then pausing in July and cutting rates in December after the hawkish tilts from Canada and Australia investors are once again scaling back their beds for a rate cut by year end but one final hike in July or possibly in September is not yet fully priced in at the same time there are still sizable odds of an increase in June this probably explains why the U.S dollar has lost its sense of direction and has been somewhat drifting lower over the past week the Australian and Canadian Dollars are Aussie and Lonnie leading the advances against the green back this week both the Aussie and Looney are trading around four week highs while the Euro and pound have been able to reclaim key levels Wall Street meanwhile Equity markets are still reeling from the realization that a pause is not synonymous with a peak in rates and that the higher for longer narrative May yet stretch into the second half of 2023. U.S Futures were last trading flat after big tech stocks pulled the NASDAQ Composite down by 1.3 percent on Wednesday the expectation that the FED is nearing the end of its tightening cycle had given stocks on Wall Street a new lease of life this year following the bear Market in 2022 but investors are now having to rethink the earnings potential of these high-flying stocks as borrowing costs around the world continue to head higher this is today's daily Market comment thanks for joining us at xm.com Events ahead.