A day light-on for data brings Canada’s central bank into focus

The EURUSD weakened slightly overnight after opening the day at $1.10932. The pair traded in a tight range early before climbing over mid-session trading, peaking at $1.11176. Late trading saw the euro fall to lows of $1.10804. It is not far off those lows, currently trading at $1.10820. The GBPUSD added some value yesterday after starting the day at $1.30082. Early trading saw the pound dip to lows of $1.29948 before bouncing off that level to hit highs of $1.30828. It has come off those highs and is now trading at $1.30453.

The Dow endured some large movements overnight after opening at 29,336.01. The index edged up to a high of 29,338.70 before falling to near-session-lows of 29,184.21 mid-session. Late trading saw the Dow climb to a near-session high of 29,335.11, only for it to fall to a low of 29,146.94. The Dow is currently trading at 29,214.00. The Dax looked in trouble halfway through the day but a late rally saw it recover most of its earlier losses. The German index began the day at 13,571.06 and tumbled throughout the first half of the day, hitting lows of 13,441.00 mid-session. It rebounded and rallied over the back half of the day, hitting highs of 13,576.13 late and then closing at 13,528.78.

The day ahead is likely to be dominated by geopolitical matters such as Donald Trump’s impeachment trial, while the World Economic Forum continues in Europe. Canada’s central bank meets overnight to discuss interest rates. While rates are tipped to remain on hold at 1.75%, the BoC’s economic outlook will come into focus as traders try to get an idea of future monetary policy settings. These meetings can cause volatility, mainly around CAD-paired currencies.

Other data published today includes:

NZ – Visitor Arrivals

US – HPI, Existing Home Sales

Australia – CB Leading Index

UK – Public Sector Net Borrowing, CBI Industrial Order Expectations

Canada – BoC Overnight Rate, Rate Statement Monetary Policy Report and Press Conference, CPI, Common, Median, Trimmed, and Core CPIs, NHPI, Wholesale Sales

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