BoC Financial Stability Review Today; Trump Tweets on Tax Reform
Published November 28, 2017
The Bank of Canada’s Financial Stability Review will be released at 10:30am EST this morning, followed by a Poloz/Wilkins press conference at 11:30am EST. Expectations are for this to be a non-event, with the risk tending toward the potential for a dovish comment.
USD is stronger this morning, rebounding from an overnight dip after Trump tweeted that tax reform negotiations in the Senate are going very well, and that the bill keeps getting “better and better”. This should be taken with a grain of salt, as there are still some GOP Senators that have yet to lend their support to the bill.
Fed Governor Powell will soon appear before the Senate Banking Committee to be confirmed as the new Chair of the Federal Reserve. Powell’s prepared remarks have already been released; they suggest staying the course on “gradual tightening” policy, though they do include a comment that the Fed needs to be able to “respond decisively and with appropriate force” to new economic threats.
Crude oil prices continue to fall this morning as markets have started doubting the outcome of the November 30 OPEC meeting in Vienna. Expectations were for the production pact to be extended, possibly until the end of 2018, but Russia has been sending mixed signals about whether it will continue to be on board. WTI crude is down 0.40% to $57.88 with Brent crude down 0.60% to $63.46 at the time of writing.