The Loonie Takes Flight Thanks To Crude Oil Prices
Crude oil prices jumped yesterday, without any other apparent reason than the interruption of production in Libya following military tensions. The loonie, which had started the day down, then changed direction and ended the session higher by 0.3% thanks to surging oil prices.
U.S. Federal Reserve Chair Janet Yellen will appear today before the Committee on Financial Services, U.S. House of Representatives to address the topic of the Fed’s supervisory role of financial markets. Representatives will certainly take advantage of the opportunity to quiz her about economic forecasts, given that the central bank is preparing to raise its key rate in December. The likelihood of this hike, currently assessed at 52%, will fluctuate depending on her comments and major employment data that will be released on Friday. According to our Chief Economist and Strategist Stéfane Marion, the Fed’s tightening cycle will be brief, given the fragile global recovery and timid inflation data.
Today we will also be monitoring International Merchandise Trade figures for Canada, where a slight improvement is expected—possibly at around $2 billion dollars.
