UNITED STATES

US indexes finished up marginally yesterday despite energy stocks weighing them down. The DJIA finished up 0.17%, S&P 500 finished up 0.05% and the NASDAQ-100 finished up 0.14%. The USD remained strong against other major currencies as the Reserve currency continues to be favoured by traders. Further volatility in dollar crosses are expect today as we see several economic figures being released from the US. We have:

  • Building permits expected at 1.2M
  • CPI m/m expected at 0.0%
  • Core CPI m/m expected at 0.2%
  • Housing starts expected at 1.19M

 

CANADA

The BOC will be releasing its monetary report and rate statement along with the overnight rate which is expected to be cut to 0.25% from 0.5% in the wake of the current deflationary pressure being experienced by the Loonie in the face of multiyear lows in the price of crude and speculative selling. Of note is that that the tally of expectation, has analyst split with a cut only marginally on the table. Should the Bank of Canada not cut rates we would expect the CAD to gain across the board as it wipes out speculative losses and regains some dignity. A cut would see some weakness to the CAD, but not very extreme as the cut has been largely priced in. Other news expected to add to the day’s volatility are:

  • Wholesales Sales m/m expected at 0.4%
  • Crude oil inventories expected at 3.3M
  • BOC Press Conference

 

UNITED KINGDOM

Pound traders will be anxious to see today’s unemployment figures after BOE Gov Carney put a dampener on any hopes bulls had of the pound strengthening after his dovish comments yesterday, in which he stated that now was not the time to raise rates as the inflation outlook for UK is expected to remain subdued. News releases from the UK include:

  • Average Earnings Index 3m/y expected at 2.1%
  • Claimant Count Change expected at 4.1k
  • Unemployment Rate expected at 5.2%