According to the inflation report published by Statistics Canada, the annual Consumer Price Index in July stayed unchanged at 2 percent to beat the market expectation of 1.7 percent. The Canadian dollar recovered some of yesterday’s losses and was trading at 1.3267 after the release.
President Donald Trump said that his administration is looking at possible tax cuts, dismissing warnings about the US recession threat. Trump also reiterated that the Federal Reserve needs to be proactive and should cut interest rates by at least 100 basis points to lift the economy.
Federal Reserve Bank of San Francisco President Mary Daly said that the US economy does not appear to be headed toward a recession and that the Fed was right to lower rates in July as it sought to keep the economy on a path of growth.
US Secretary of State Mike Pompeo said that the US has removed nearly 2.7 million barrels of Iranian oil from global markets daily as a result of Washington’s decision to reimpose sanctions on all purchases of Iran’s crude. WTI crude was trading at $56.72 a barrel before today’s key inventory data release.