1. Canada’s Job Report To Give Rate-Hike Clues
Canada’s employment data for January are due today 13:30 GMT and current consensus points to a relatively weak report. That being said, the Canadian labour market has seen great improvement in recent months. In December alone, the unemployment rate declined to 5.7% from a previous 5.9%, signaling that the economy added jobs at a robust pace. In January however, the jobs market is projected to have lost some of its previous momentum. Even so, a somewhat healthy jobs report is expected to encourage a more hawkish stance by the BoC (Bank of Canada) and push CAD pairs higher.*
2. Dollar Plummets On U.S. Government Shutdown
The U.S. dollar slipped lower against other major currencies on Friday, as the U.S. government is now going through a second shutdown, after a vote on a budget deal was delayed by Congress. Against the EUR the dollar was last seen trading 0.3 percent lower at 0.8141 as of 8:00 GMT. It should be noted however, that the greenback’s losses were limited as U.S. bond yields turned higher. On a broader market level, major U.S, indices dropped considerably on Thursday with the Dow plunging by more than 1,000 points.**
3. GBP Higher As BOE Points To More Rate Hikes
BOE Deputy Governor Ben Broadbent, stated that Improvements in the economy mean the path for U.K. interest rates is slightly higher than what the Bank of England planned in November. A few hours after BOE’s latest monetary meeting Broadbent gave a more hawkish outlook to BOE’s future monetary policy, in a BBC radio interview. Broadbent reiterated however, that any rate hike moves would be “limited and gradual”.***
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*Source: CNBC
**Source: Investing
***Source: Reuters
