- October 29, 2019
- Posted by: John Curran
- Category: Market News
Good morning,
The market is awaiting tomorrows key central bank decisions from both sides of the border. The Bank of Canada will report its decision at 10AM EST, the implied probability that the Canadian rate remains unchanged is 99.2%. The US FED will make its announcement at 2PM. Markets are indicating a 90.9% probability that the U.S. will cut rates by 0.25% on Wednesday. The last three rate cuts by the FED have largely been priced into the market ahead of the decision. With the consensus this high from both sides of the border any volatility will be based on the tone and detail of the announcements. Market participants will key into BoC governors tone on Canadian household debt levels and the effect that global trade tensions are having on the Canadian economy. Support is at 1.3016/26 – 2019 July multi-day lows with resistance at 1.3118/64.