FX Daily Update
The National Bank of Canada | Dec 08, 2016 09:08AM ET
Investors keeping a close eye on the ECB
We’ll be paying careful attention to the press conference by ECB President Mario Draghi at 8:30 this morning further to the decision by the European Central Bank to keep its key rate unchanged. A great deal of volatility is therefore to be expected in the euro today. After a rough November, current levels represent an excellent opportunity for our clients who need to purchase machinery from Europe.
To no great surprise, the Bank of Canada announced yesterday that it would keep its bellwether rate unchanged at 0.5%. Economic uncertainty remains high and the Canadian economy is still far from firing on all cylinders. Despite firmer global economic conditions, domestic inflation remains below projections, while exports continue to disappoint. In the energy sector, data released yesterday morning at 10:30 showed that Distillate Inventories were higher than analysts had expected, which weighed down WTI oil, sending it briefly below the $50/barrel mark.
After a rough start to the year, North American stock markets continue to surge. Since the beginning of 2016, the Dow Jones, S&P500 and Toronto’s S&P/TSX have gained 12.2%, 9.7% and 17.1% respectively.
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