The USD/CAD soared today as the greenback rallied after Stanley Fischer reiterated his comments from Friday, holding tight to the possibility of more than
The USD/CAD soared today as the greenback rallied after Stanley Fischer reiterated his comments from Friday, holding tight to the possibility of more than one rate increase before the end of the year. The Canadian dollar got little help from a small rebound in oil prices while gold dipped today. The moves were all generated by the stronger US dollar. Fischer’s comments are what sent the dollar soaring, as he noted that a hike could take place as early as September, while two rate increases are possible before the end of the year. While the dollar did pull back from its highs on Monday, the basket of currencies is firmer this morning, testing Monday’s highs as well as the 50-day moving average.
Positive US data failed to introduce much volatility to USD/CAD. Monthly personal income was reported to increase 0.4%, while personal spending rose 0.3%, both figures came in line with expectations. The annual PCE price index was reported unchanged at 1.6%. As the Fed’s preferred measure of inflation, the figures were important for rate hike speculators following the hawkish comments heard last week. An unchanged figure, however, has failed to further encourage rate hike speculators. While the Dollar remains firm, the futures market has slightly priced down the probabilities of a rate hike. September odds remained unchanged at 33%, while December odds moved down to 51.7%, down from Friday’s 59.1%.
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August 31, 2016
Country | Event | Volatility | Previous |
GBP | Gfk Consumer Confidence | 2 | -12 |
JPY | Industrial Production | 2 | -1.5 |
JPY | Industrial Production | 2 | 2.3 |
AUD | HIA New Home Sales | 2 | 8.2 |
CHF | UBS Consumption Indicator | 2 | 1.34 |
EUR | Unemployment Rate s.a. | 3 | 6.1 |
EUR | Unemployment Change | 3 | -7 |
EUR | Unemployment | 2 | 11.6 |
EUR | Unemployment Rate | 2 | 10.1 |
EUR | Consumer Price Index | 3 | 0.2 |
EUR | Consumer Price Index – Core | 3 | 0.9 |
USD | ADP Employment Change | 2 | 179 |
CAD | Gross Domestic Product Annualized | 2 | 2.4 |
CAD | Gross Domestic Product | 2 | -0.6 |
USD | Chicago Purchasing Managers’ Index | 2 | 55.8 |
USD | Pending Home Sales | 2 | 1 |
USD | Pending Home Sales | 2 | 0.2 |
Government Bond Auctions
Date Time Country Auction
Aug 29 13:00 Norway Details of bond auction on Aug 31
Aug 30 11:10 Italy Holds bond auction
Aug 31 11:05 Norway Holds bond auction
Aug 31 11:30 Germany Eur 4bn Sep 2018 Schatz
Sep 01 10:30 Spain Holds bond auction
Sep 01 11:30 UK Jul 2022 Gilt
Sep 01 11:50 France Holds bond auction