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Oil Prices Fall; BOC Rate Statement Today
Published December 6, 2017
The ADP non-farm payroll report came out this morning and was on par with forecasts, with data showing that the private sector added 190,000 jobs in November, down from 235,000 in the previous month. The labour department’s more comprehensive non-farm payrolls report comes out this Friday, which includes both public and private-sector employment.
Market watchers believe the Canadian central bank will hold its benchmark rate at 1.0% until April, held back by the uncertainty over how highly indebted consumers will handle increasing borrowing costs and the unknown fate of NAFTA. The statement this morning at 10:00AM EST will be scrutinized for any signs of optimism and a more hawkish tone from Poloz.
Technology stocks were set to fall for the fourth day in a row today. Investors ditched the year’s best performers on doubts over stretched valuations and the impact of a US tax overhaul on corporate earnings. The Nasdaq Composite Index has slipped 1.6% in the past three days, its worst such fall in more than three months.
Oil prices are lower this morning amid speculation that weekly supply data from the US Energy Information Administration due at 10:30 AM EST will show a sizable gain in US gasoline and fuel supplies. Brent Crude is down ~1% on the day, trading near 62.20, with WTI Crude down ~1.34%, trading at 56.85 at time of writing.
Economic calendar events to keep an eye on tomorrow include building permit data out of Canada, unemployment claims data out of the US and a press conference from ECB President Draghi.