- December 3, 2018
- Posted by: Joey Benedid
- Category: Market News
Powell’s near neutral comments last week coupled with a Trump Xi ceasefire at the G20 over the weekend has risk rallying with equities and oil noticeably higher. This exuberance will still need to be carried by positive data going forward and it remains to be seen whether or not this Trump XI dance continues. FED Chair Powell is up again this week as he is due to testify on the economic outlook before the Joint Economic Committee of Congress in Washington DC Wednesday and Thursday. Friday we also have U.S. employment data out so another busy week ahead.
CAD trading much better down through uptrend support to 1.3160 with 1.3240-60 now providing strong resistance. Support is now at 1.3125 and 1.3030-1.3050 below. Alberta cut WCS production (8.7 %) due to low prices from inventory buildup and continuing distribution issues. Best not to speak to Albertans about the 2000 GM jobs lost in Ontario when Alberta has lost 120,000 jobs in the oil selloff & commercial real estate in Calgary is 45% vacant. BoC announcement on Wednesday is likely to see no change in the overnight rate as the latest chatter from Mr. Powell could equal a BOC on hold for the foreseeable future. Any back tracking on rates from Mr. Poloz on Wednesday will hurt the CAD.