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House Judiciary Committee Holds Impeachment | Bank of Canada Expected to Hold Rates Today

Published December 4, 2019
  • The House Judiciary Committee is holding a hearing today to consider whether President Trump committed an impeachable offense in his Ukraine dealings.  Based on the comments coming out of the Democrat-controlled House, it is widely expected that they will vote on bringing impeachment charges before Christmas.  If this is the case, it is likely that Trump would find himself involved in a Senate trial sometime in January.  Despite the headlines, markets have held up relatively well as there is little evidence to suggest that the Republican-controlled Senate will oust their President.
  • The Bank of Canada is set to announce its final interest rate decision of 2019, and the expectation is they will leave rates unchanged when they release their statement at 10 am EST.  The loonie has been range-bound recently as markets try to get a read on where monetary policy is headed in 2020.  January’s meeting is only showing about a 25% chance of a rate cut being priced in, but BoC Governor Poloz could move this once he gets up to the podium at 11:15 am EST.
  • At the same time as the BoC release their statement, US Non-Manufacturing ISM will be coming out as well.  Economists expect the index, which measures the US Services sector, to fall slightly from its October reading.  With the US dollar already trading at one-month lows, a poor reading could exacerbate the declines further if markets get the sense that the weakness in the manufacturing sector is making its way into services.