The greenback continues to find support against the loonie following comments by San Francisco Fed president John Williams on Saturday. Williams noted that the Fed should raise interest rates three times in 2018 given that the economy will benefit from tax cuts.
Currently, markets have priced in odds of 68% for the next 25 basis point hike to occur in March. Inflation data released this Friday will be eyed closely by investors to make necessary adjustments to projections for policy tightening.
The euro slipped nearly half of a percent against the greenback and nearly a quarter percent against the loonie this morning; investors took profits after a recent rally, though currency markets remain bullish about the outlook for the single currency on the backdrop of a strengthening economic recovery.
Crude prices are higher today, supported by a slight decline in the number of US rigs drilling for new production. WTI Crude is up ~0.36% trading at ~$61.66/barrel and Brent Crude is up ~0.22% trading at ~$67.92/barrel at time of writing.
Today’s economic data calendar is highlighted by the Bank of Canada’s Q4 Business Outlook Survey. South of the border we have a couple FOMC speeches and Consumer Credit report.