LAST WEEK RECAP
THE LOONIE WAS FLAT AS THE USD TRADED STRONGER AGAINST MOST OF ITS COUNTERPARTS, AND MORE FUEL WAS ADDED TO THE FIRE AFTER FED CHAIR JANET YELLEN’S SPEECH. THE MARKET HAS NOW PRICED IN THE PROBABILITY THAT THE FOMC WILL RAISE RATES IN DECEMBER. YELLEN’S KEY TAKEAWAY WAS WHEN SHE SAID THAT THE FED ”SHOULD BE WARY OF MOVING TOO GRADUALLY” WHEN IT COMES TO INTEREST RATES. WTI CRUDE OIL CLIMBED TO A 5 MONTH HIGH ON NEWS OF TURKEY THREATENING TO CUT OFF OIL SUPPLY FROM THE KURDISTAN REGION, HOWEVER BY FRIDAY’S CLOSE OIL WAS TRADING STOOD AT 51 DOLLARS. THE CANADIAN GDP y/y MISSED EXPECTATIONS OF 3,9% PRINTING AT 3,8%. THE PREVIOUS READING HAD THE BOC RAISING RATES. THE SEPTEMBER MISS MAY HAVE THE DATA DEPENDANT BOC TAKING NO ACTION AT THE NEXT POLICY MEETING IN OCTOBER.
THE WEEK AHEAD
THE US ECONOMIC CALENDAR IS BUSY THIS COMING WEEK WITH THE HIGHLIGHTS BEING ANOTHER SPEECH FROM FED CHAIR JANET YELLEN, AND NFP ON FRIDAY. THE CANADIAN DOLLAR IS ONLY GOING TO START SEEING SOME ACTIVITY ON THURSDAY AND FRIDAY.
ECONOMIC CALENDAR