Dependence on economic data
You have to wonder if the economic stars will ever align and show the Fed beyond all doubt that the time is right once again to raise its key rate. Such a time looked to be approaching until Friday’s release of disappointing U.S. GDP numbers, which came in well below expectations. Given this context, it would appear that we will need to wait until August 26 to find out more when Fed Chair Janet Yellen addresses the public at large as part of a conference in Jackson Hole.
Although the greenback dipped on Friday, it’s up slightly this morning. This situation is in large part due to the 98% anticipation (for all intents and purposes a sure thing), that the Bank of England will cut its key rate on Thursday. Obviously, such a degree of probability leaves a great deal of room for disappointment.
It’s a sparse economic calendar today, with most Canadians enjoying a day off, but we’ll be keeping an eye on the ISM Manufacturing Survey south of the border at 10:00, which will allow us to gauge the health of the U.S. manufacturing sector.
