Bank of Canada decision and the Beige Book on the agenda The economic data calendar is basically bare in upcoming US and Canadian trading. The only numbers that will roll out are the weekly EIA energy inventories. Judging by the released late Tuesday, there should be small draws across the board.
Speaker in the Russian Upper house of parliament – Russia response to US sanctions will be precise and painful Not sure the guy has heard the latest: More on the ‘no new sanctions on Russia’ story
Kaplan on Fox Business – US growth will moderate next year and in 2020 I’ll bring updates from the interview if there are more headlines. Meanwhile, the question for the Fed in the months ahead is whether they will brush aside one-time inflationary items in the same way as they brushed aside one-time deflationary items.…
Dudley spoke at community banking conference NY Fed President Dudley gave the opening remarks at a banking conference in New York but there was nothing notable in the comments. He will speak on the economic outlook at 1915 GMT.
Poloz and Wilkins continue Poloz: – Our core measures have ‘paid for themselves’ by showing trend – Weakness in core inflation measures a year ago made him nervous but it worked out Wilkins:
Villeroy in New York – Notes economic growth moderation of late – Says underlying growth momentum is solid and broad based – Recent data don’t alter inflation outlook Translation: We know it’s been poor but we don’t care.
Poloz and Wilkins take questions – There have been some positive signs on wages but there are still questions – Progress has been encouraging and we have renewed confidence that we have the right narrative
Bank of Canada press conference From the opening statement: – Deliberations focused on appropriate pace of rate rises – Recent wage data has been encouraging These are some dovish comments and USD/CAD is at fresh highs of the day.
Poloz and Wilkins to speak Poloz and senior deputy Wilkins will deliver an opening statement and then take questions from the media starting at 11:15 am ET (1515 GMT). Watch the event live, here:
USD/CAD back below 1.2600 USD/CAD jumped nearly a full cent on the Bank of Canada decision to leave interest rates unchanged. No move was mostly expected but OIS pricing showed about a 20% chance of a move so the kneejerk higher was understandable.