Canada’s GDP Report Due | BoC Holds, Fed Cuts Rate
Published October 31, 2019
The Canadian dollar is expected to remain volatile against the greenback, as Canada GDP data is released this morning. The GDP growth is expected to rise by 2.0 percent in August against the last reading of 0.0 percent. At the time of writing, the Canadian dollar is trading at 1.3155 levels against the US dollar.
The Federal Reserve cut its benchmark interest by a quarter-percentage point for the third time this year and hinted that they may pause to assess the economy before acting again. Federal Reserve Chairman Jerome Powell said that the current level is likely to remain appropriate given the Fed’s economic outlook of moderate economic growth, a strong labour market and inflation growing at around 2 percent.
Bank of Canada left its benchmark interest rate unchanged at 1.75 percent yesterday. The Canadian dollar weakened to a near two-week low against the greenback after the announcement. The central bank also forecasts an expansion of 1.7 percent in 2020, down from its earlier projection of 1.9 percent, and growth of 1.8 percent in 2021, down from its previous call of 2.0 percent.
WTI crude prices fell to $54.60 a barrel after the Energy Information Administration reported a crude oil inventory built of 5.7 million barrels for the week of October 25, further pressuring oil prices a day after American Petroleum Institute reported an estimated fourth consecutive inventory build-up of 592K barrels.