Bank of Canada raised its official interest rate by 25bp to 1.50% as expected.
Not much change in the statement except for some lines mentioning about increasing risk from trade tensions.
$CAD dropped to 1.3065 low before recovering all the way back up to mid 1.31, BOC Governor Poloz press conference also reiterated trade tensions and NAFTA uncertainties.
Volatile day for GBP as key government officials resign sinking the pound, small gains as PM Theresa May is said to be safe for now, GBPUSD steady at 1.3250 at NY close.
USDJPY making big jump, nearing the 111 figure.
US Indicies closes with strong gains, even with tariff war intensifying.
1/5th of Bitcoin supply is said to be missing, approx. $20 Billion.
GDP and Manufacturing production for UK, tomorrow at 4:30am EDT
Bank of Canada is expected to raise its official rate by 25bp this Wednesday, OIS market has priced in 91% chance of a 25bp hike.
Thursday’s US June CPI could see some stronger reading on the back of recent higher Oil price, while core CPI is expected to be +0.2% mom.
FOMC Minutes from June meeting is out, modestly hawkish tone overall;
Quite a busy week except Wednesday July 4th US holiday,
Main focus should be US NFP number on Friday, market forecasting 198k NFP and 3.8% unemployment rate.
Sterling decreases because of Brexit talks and doubts that the BoE will raise interest rates.
USD fading due to weak Philadelphia Fed data.
ECB left rates unchanged as expected, announced tapering from October to December then end QE by the end of December.
ECB President Draghi’s press conference were more dovish with main comments below;
The Fed implemented a rate hike of 25 basis points as expected. The original thought was that we would see 3-4 rate hikes in 2018, it now seems that we will see 4.
If we look at the Dot Plot, the Median moved from 2.125 to 3.125 on the back of the rate announcement which offers us a more Hawkish tone from the Fed going forward.
A kneejerk reaction of Dollar strength in the moments after the rate was announced.
FOMC press conference to follow at 2:30pm.
Dollar slides as the Federal Reserve’s rate outcome comes closer.
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