The European Central Bank kept interest rates on hold today amongst increasing pressures from investors for policymakers to signal additional quantitative easing. Trade tensions and persistent fears of a global recession have put markets in a state of flux and has continued to push the sentiments of the ECB.
The Bank of England’s governor, Carney, stated that if the UK economy continues to perform as the monetary policy committee anticipates, upward pressures on domestic prices is likely to continue. Governor Carney went on to say that, in this scenario, it is highly likely that the central bank will have to raise interest rates further in order to keep inflation at target.
USDCAD has come under pressure as crude oil prices continue to drop; there has been increasing emphasis on selling the commodity as global trade fears mount. This morning, Canada will publish trade balance data along with Ivey PMI reports. The US economic docket will feature weekly jobless claims data together with trade balance figures.
President Trump has said that “not nearly enough” progress has been made during the first day of talks between Mexico’s foreign minister, Marcelo Ebrard, and White House officials. The goal of this meeting is to avert a US 5% tariff threat due to be enforced on Monday.