- December 12, 2017
- Posted by: Joey Benedid
- Category: Market News
Relatively quiet overnight session once again with the market keeping the powder dry for tomorrow’s U.S. CPI data and the FOMC rate announcement. A rate hike is virtually a given so the action is likely to occur if inflation data is strong as the market is looking to price in 2018 hikes on a firmer note. U.S. producer pricing index numbers are out at 8:30AM EST which may also see the dollar climb on firm numbers while the ECB’s President Draghi and RBA’s Governor Lowe will both be speaking this afternoon.
USD/CAD traded in a 50 point range and has drifted marginally lower on the back of WTI oil climbing above $58 per barrel once again. The BoC’s Governor Poloz speaks on Thursday and it is highly unlikely he will boost the fortunes of the Canadian dollar as he is expected to discuss our country’s stagnant to lower inflation tendencies which will indicate rates are to remain unchanged into the first half of 2018. We remain range bound between 1.26-1.29 until further notice, with pundits expecting the topside to break heading into the New Year and beyond, but until then, play the range.