After negotiating for almost two years, the international community and Iran reached an accord regarding Iran's nuclear program. In exchange for a gradual lifting of economic sanctions, Tehran agrees to limit all nuclear activities for 10 years and guarantee access to international observers. This is a historic deal for international diplomacy. Given that Iran is a potential exporter of crude oil, the accord could have repercussions on financial markets, specifically crude oil prices over the medium term.
Today we will be closely monitoring the Bank of Canada (BoC), which will announce its key rate decision at 10 a.m. Many pundits, including certain Canadian and international banks, are forecasting a rate cut. Conversely, Stéfane Marion, National Bank's Chief Economist and Strategist, does not share this outlook. The Canadian job market has surprised analysts with its resilience, despite concerns related to the collapse in crude oil prices. In addition, as a key rate hike is looming in the U.S., it would be surprising that Canadian monetary policy would diverge significantly from the one of our neighbours to the south.
In short, the loonie could be in for a wild ride today.
- Range of the day: 1.2690 - 1.2820
Have a good day!
Julien Duquette