The euro is under pressure this morning, with the release of weaker-than-expected Retail Sales and manufacturing data for the eurozone, which have revived hopes that the European Central Bank will announce tomorrow that it is revamping its asset purchasing program. Although ECB President Mario Draghi has disappointed in the past, the possibility that the region could record anaemic growth of just +0.1% in the fourth quarter and the spectre of stagnation appear to be weighing heavily in favour of more substantial intervention.
Given this context, the single currency has returned to its lowest level in two years against the USD. On the North American economic agenda, we will finally have some indicators of note to examine today. The Bank of Canada will announce its key rate decision at 10:00 a.m. and is obviously expected to opt for the status quo. What will be more interesting is whether Mr. Poloz's outlook for our economy has changed further to recent events. Then at 2:00 p.m., the Fed's Beige Book will be released.
Have a great day!
Stéphane Goulet
- Range of the day: 1.1330 - 1.1460