Investing.com – Here’s your preview of the top 3 things that could rock markets tomorrow
Bank of Canada expected to raise rates for first time in 7 years
USD/CAD will be one of the currencies pairs to watch, as the Bank of Canada is widely expected to hike interest rates from 0.5% to 0.75%, and deliver an update on its outlook concerning monetary policy.
The interest rate decision will be followed by a speech later during the session from Bank of Canada governor Stephen Poloz, who said earlier in June that low interest rates put in place in 2015 have "done their job".
USD/CAD shrugged off rate hike expectations on Tuesday, rising to C$1.2919, up 0.22%.
Crude inventory data
Weekly crude inventory data from the Energy Information Administration due Wednesday, is expected to show that crude stockpiles fell by 2.85m barrels last week.
The report will be released a day after crude futures settled more than 1% higher at $45.04, as oversupply jitters eased, after the Energy Information Administration lowered its forecast for U.S. production to 9.9 million barrels per day for 2018, from last month’s forecast of about 10 million barrels per day.
Yellen testimony
Fed chair Janet Yellen is scheduled to testify on the economy before the Senate Banking Committee at 10:00AM ET (14:00GMT) Wednesday.
Investors will parse Yellen’s testimony for any clues about future monetary policy amid concerns from Fed officials about the impact of further rate increases on inflation.
“I will want to monitor inflation developments carefully, and to move cautiously on further increases in the federal funds rate, so as to help guide inflation back up around our symmetric target." Federal Reserve Governor Lael Brainard said Tuesday.
After the Federal Reserve hiked its benchmark rate for the second time this year in June, Yellen suggested the slowdown in inflation was “transitory”, adding that economic growth warranted a further rate increase this year.
Comments
Post a Comment