This ongoing session is huge and still far from over!
The BoC rate decision (09:45 ET) and press conference just concluded with the as expected rate cut to 2.50%, pretty bearish on the Canadian economy but the CAD is holding well (for now).
In about 2.5 hours, the spotlight shifts to the Fed at 14:00 ET, with the rate decision, economic projections, and dot plot, capped by Powell’s press conference at 14:30 ET.
So much will be on the line for this FED Meeting which will keep Markets occupied for the entire session and upcoming weeks.
The rest of the week has less on its plate:
On Thursday, focus moves back to the U.S. labor market with the usual weekly jobless claims and the Philly Fed survey at 08:30 ET.
Energy traders will also watch the EIA natural gas storage change at 10:30 ET.
Friday closes with Canada’s Retail Sales (MoM, Jul), offering another read on consumer resilience or lack thereof.
The Bank of Canada now expects a decent rebound towards the end of the year or should keep cutting rates.
Watch the data closely (Retail sales actually was one of the better Canadian data and will have to hold).
Safe Trades in preparation of the FOMC!
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