Today has been a light day in terms of major market movers. Although there has been mounting speculation that BoE Governor Mark Carney may announce his resignation, these reports must be taken with a pinch of salt, as UK PM Teresa May came to support of the BoE governor early in the session. Elsewhere, the USD had stagnated after the sell off late Friday evening, when the FBI announced they have obtained a warrant for Presidential candidate Hilary Clinton’s emails, USD/MXN retraced to find support at the 18.90 level and now consolidates around that level.
Sticking with the greenback, USD/CAD has received a bid today after WTI and Brent crude futures sold off currently down just over USD 1.20/bbl. This move came as no further clarity had been provided on Friday's reports that Iraq and Iran will not participate in the 4% freeze agreed in Algiers. In South Africa, Finance Minister Gordhan’s charges have now been dropped by the authorities. This saw USD/ZAR immediately fall to reach level we have not seen since the September 28th.
Overnight, we have highlights in the form of the BoJ and RBA interest rate decisions however, with both central banks set to remain unchanged. There are some outside calls for a RBA rate cut in rates, but odds are on for no action.
Elsewhere, in regards to the BoJ, none of the surveyed analysts are predicting a cut, but the question remains if they are looking to extend their QE purchases. In tomorrow’s session, we see manufacturing PMI’s from the major nations most noticeably from the UK and the US. In North America, Canadian GDP is sure to inspire some volatility and is expected to be lower which could see USD/CAD extend of gains.