This morning Bank of Canada Governor Poloz is expected to place a hold on further interest rates increases. Markets are anticipating that policy makers will leave the benchmark overnight rate at 1.75%. This comes at a time when disappointing Canadian economic data, coupled with slowing global growth will likely prompt Poloz to formally put an end to his rate hiking cycle.
Later this evening the Bank of Japan monetary policy meeting is in focus. The Bank of Japan is expected to leave its policy rate unchanged at -0.1% with an unchanged tiering system on applicable reserves, an unchanged pace of asset purchases.
US stocks reached record highs on Tuesday extending a months-long recovery in spite of continued uncertainty over the outlook for the global economy. The benchmark S&P 500 ended the day 0.9% higher at 2,933.
US Trade Representative negotiator Robert Lighthizer and Treasury Secretary Steven Mnuchin will travel to Beijing next week as both sides seek to have a trade agreement signed in the coming weeks.