USDCAD remains quite flat to start the day (~1.2650) as markets await tomorrow’s Bank of Canada meeting (10am EST). There is currently a 19% chance of a 25bps rate hike. Federal Finance Minister Bill Morneau will deliver his economic update today at 4pm EST, which should show smaller deficits this year and next.
Stock futures for Canada’s main stock index pointed to a higher opening today, as oil prices rose. Crude prices found support from supply disruptions in Iraq after Saudi Arabia said it is determined to reduce crude inventories further. Brent Crude is up nearly 0.6% on the day, currently trading above 57.70/barrel, with WTI Crude up nearly 0.9% trading above 52.30/barrel.
Donald Trump has stated that he is very close to announcing his recommendation as Chair of the US Federal Reserve. Among the favourites are current chair, Janet Yellen, current Fed governor, Jerome Powell, and Stanford University economist, John Taylor. Trump has only committed to making his decision before he leaves for Asia on November 3rd.
Major automakers, suppliers and auto dealers are launching a new coalition today to urge Trump not to withdraw from the North American Free Trade Agreement. The auto coalition, which includes the Motor & Equipment Manufacturers Association and American International Automobile Dealers Association, said ending NAFTA would put US auto sector jobs at risk.
Private sector growth across the euro zone slowed more sharply than predicted this month, but stayed strong even though firms increased prices at the steepest rate in over six years. The ECB policy meeting is on Thursday with growing expectations that the central bank will announce plans to begin trimming its massive monetary stimulus program.