US Dollar Steadies Ahead of Federal Reserve Meeting; BoC Governor Poloz to Speak Again in Ottawa
Published November 1, 2017
The US dollar remains on pace for its best month this year since February as strong economic data from the States continues to lend strength to the greenback; USD/CAD finished higher yesterday as the loonie’s weakness from poor GDP readings coincided with renewed USD strength.
The market now looks towards the FOMC Statement and announcement of the Federal Funds rate from the US Federal Reserve today at 2:00 PM EST; rates are expected to be unchanged, however, investors will closely monitor the FOMC statement to gauge whether the Fed is becoming more hawkish in the wake of stronger US economic data.
Industry data on US Non-Farm Employment Change from payroll services company, ADP, was released at 8:15 AM EST this morning; while the market tends to focus more on official job numbers from the US government, this data release serves as a meaningful preliminary measure of the strength of the American economy.
The Canadian Purchasing Manager’s Index was released at 9:30 AM EST; US iterations of this data and month-on-month US construction spending growth will be released later in the morning.
Bank of Canada Governor Stephen Poloz will speak again today along with Senior Deputy Governor Carolyn Wilkins as they testify before the Standing Senate Committee on Banking, Trade and Commerce in Ottawa.
In yesterday’s speech, Poloz strongly noted that Canada is at a “crucial” spot in the economic cycle and reiterated the number of uncertainties that are forcing the bank to be cautious in determining times for future interest rate hikes.