tock markets around the world have been holding steady overnight as the selloff in USD sparked by a soft ISM non-manufacturing PMI report ran its course. Gold, US index futures and the FTSE are flat this morning while the Dax is up 0.3%. Asia Pacific markets finished their day down slightly. Crude oil continues to bounce back with WTI and Brent both up about 0.8%.
Monetary policy trends and speculation has been the main focus of trading overnight. Sweden's Riksbank maintained its (0.50%) benchmark rate boosting SEK a bit. It did not cut deeper into negative territory with inflation picking up although it didn't change any of its forecasts.
Next up is the Bank of Canada's decision due at 1000 am EDT. The bank is expected to maintain its overnight rate at 0.50%. Earlier in the summer some of the central bank's of other resource exporting countries cut rates giving Governor Poloz scope to do the same. A cut this month appears unlikely as recent Canada data has been distorted by the Fort McMurray wildfire. Also, decisions to hold by the RBA and Riksbank this week have reduced outside dovish pressure.
The Bank of Canada has been willing to let CAD do the heavy lifting for the last year and this may continue. Traders may look to the statement for signs of whether the expected summer rebuilding rebound has materialized or not and if a rate cut could be possible later in the year.
USD regained its footing after sliding about 1.0% against most majors after SF President Williams indicated he's still looking for a rate hike sooner or later. The hawkish camp dominates today's agenda with Richmond Fed President Lacker and KC Fed President George speaking.
Sterling's recovery has lost a bit of steam today after mixed industrial and manufacturing production reports and ahead of testimony from Bank of England Governor Carney later today. JPY and EUR also may be influenced on speculation surrounding the ECB meeting later this week and the Bank of Japan meeting later this month.
Sears Canada ($0.90) vs street $0.13, sales 648M vs year ago $768M. same store sales on core retail (6.2%)
Sweden interest rate (0.50%) no change as expected
Poland interest rate 1.50% no change expected
UK Halifax house prices 6.9% vs street 7.0% vs previous 8.4%
UK industrial production 2.1% vs street 1.9%vs previous 1.6%
UK manufacturing production 0.8% vs street 1.7% vs previous 0.9%
Germany industrial production (1.2%) vs street 0.2%
Norway industrial production 0.5% vs previous (8.7%)
Australia construction PMI 46.6 vs previous 51.6
Australia GDP 3.3% as expected previous 3.1%
NZ Q2 manufacturing activity 2.2% vs previous (2.6%)
Upcoming significant economic announcements include:
10:00 am EDT Canada interest rate 0.50% no change expected
10:00 am EDT Canada Ivey PMI street 56.5
3:00 pm BST UK NIESR GDP estimate street 0.3%
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