ottawa canada

Canadian rates the highlight of yesterday

12th July 2018 Market Update

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🇬🇧 GBP – There was no data out from the UK yesterday. However, sterling managed to hold on to its position against the euro and dollar despite the relative political uncertainty. The Bank of England previously stated that Brexit could threaten values in the derivative values, however the EU commission yesterday made a statement trying to squash these concerns. Apart from a Bank of England Credit Conditions Survey there is very little of note from UK today, and nothing of note tomorrow.

🇪🇺 EUR – Yesterday Draghi spoke at an ECB statistics conference, however it appears very little of interest was said. Today the ECB’s monetary policy meeting accounts is released, which is a record of the governing board’s most recent meeting. This will provide insights in to the ECB’s previous interest rate decision, so could therefore affect rates.

🇺🇸 USD – Yesterday crude oil inventories were released, however they had little impact on the rates. Throughout yesterday the dollar strengthened gradually, and this was probably because the markets remain anxious about the US/Chinese trade war.

Today CPI is in the spotlight from the US and is expected to come in at 0.2%. A higher reading could lead to speculation of further interest rate rises though.

 

Key Announcements

🇪🇺 EUR
12:30pm: ECB Monetary Policy Meeting Accounts

🇺🇸 USD
13:30pm: CPI m/m, Core CPI m/m

 

Summary: There was very little data of note yesterday, however the dollar gradually strengthened yesterday as market concerns over a trade war were still present. As a result, Canada’s interest rate decision was the highlight of the day, as interest rates were increased from 1.25% to 1.5%. As this had widely been expected by the market, CAD only moved slightly in response.

 

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Darren Kilner

Darren Kilner

Darren is Head of Dealing at FairFX. Darren lives and breaths FX, his Mastermind topics are G8 currencies and economic forecasts.

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