BoC meeting looms

January 20, 2021

A stack of data is scheduled for release today, while Canada’s central bank meets to discuss interest rates.

The USD weakened overnight, sending paired currencies higher. The EURUSD began the day at $1.20741 and slipped to a low of $1.20717 during the first hour of trade. Bouncing off those lows, the euro climbed to a high of $1.21444 late in the day. It has come away from those highs slightly and is trading at $1.21381. The GBPUSD followed a similar path to the euro after opening at $1.35840. The pair dipped to lows of $1.35728 in the opening hour before rebounding and marching up to a late high of $1.36360. It has continued that momentum and is now trading at $1.36439.

The Dow opened the session at a low of 30,844.58 and climbed to highs of 31,090.31 heading into late trading. It has come off those highs and is now trading at 30,984.30. The Dax ended the day lower after a promising start. The German index started the day at 13,897.43 and lifted to a high of 13,958.82 early. Things went south from there as the Dax fell to lows of 13,798.10 late in the day. It has come off those lows and is now trading at 13,863.20.

The day ahead sees the BoC meet to discuss monetary policy settings. Interest rates are tipped to remain on hold at 0.25%. Elsewhere, a host of data is expected to be released, mainly from the UK and Europe.

Data published today includes:

US – NAHB Housing Market Index

Australia – CB Leading Index

UK – CPI & Core CPI, PPI Input & Output, RPI, HPI, BoE Governor Andrew Bailey speaks

Europe – European Final CPI and Final Core CPI, German PPI

Canada – CPI, Core, Common, Trimmed and Mean CPIs, BoC Rate Statement, Monetary Policy Report and Press Conference


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