1. Will BOC Raise Key Interest Rates This Week?
Canada’s recent data on employment and retail sales have suggested that the nation’s output gap is fast closing, this fuelled expectations that the Bank of Canada (BOC) could raise rates for a third time on Wednesday. It is important to note that there is currently a more than 90% probability that the overnight rate target will rise from 1.0% to 1.25%. Some analysts have warned however, that the BoC may decide to wait a little longer before hiking rates again as the last rate hike was in July 2017. What is more, concerns about the possible termination of NAFTA may dissuade the BoC from raising rates this week. In any case a rate hike this week could push the Canadian dollar even higher. The CAD has rallied to a 3-month high against the US dollar earlier this month before retreating on renewed NAFTA worries.
2. Dollar Wallows As Euro and Yen Rally
The dollar wallowed at three-year lows against its major rivals on Monday morning, while the euro edged higher on expectations that European Central Bank policymakers could trim their monetary stimulus next week. Against the yen, the dollar slipped to its lowest levels since September, after comments from Japan’s central bank governor, Haruhiko Kuroda highlighted Japan’s economic recovery. Mr. Kuroda reiterated BOJ’s resolve to maintain its massive stimulus program until 2 percent inflation is achieved and commented that the nation’s economy was expected to continue expanding.
3. Oil Prices Rise On Output Cuts
Crude Oil WTI edged higher on Monday, after being supported by ongoing output cuts led by OPEC and Russia. It should be noted that a recent rise in U.S. and Canadian drilling activity has capped gains. U.S. West Texas Intermediate (USOIL) crude futures rose to as high as $64.53 as of 8:00 GMT this morning, up 23 cents from Friday’s close.
Upcoming Earnings Reports This Week:
16/01/2018 – Citigroup Inc. (#C) to report pre-market
17/01/2018 – Bank of America Corporation (#BAC) to report pre-market
17/01/2018 – Goldman Sachs Group Inc. (#GS) to report pre-market
18/01/2018 – The Bank of New York Mellon Corporation (#BK) to report pre-market
18/01/2018 – American Express Company (#AXP) to report post-market
18/01/2018 – International Business Machines Corporation (#IBM) to report post-market
You can find and trade all of the above mentioned equities and commodities on BDSwiss Forex/CFD platforms.