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Canadian dollar drops on rate cut comments

This afternoon’s trade has been dominated with the Bank of Canada rate decision which saw rates kept on hold at 0.5%. However dovish comments from Governor Poloz that a rate cut remains on the table have seen the Loonie fall lower as USDCAD (+1.02%) has rallied back towards the 1.32 handle. 

Despite a recent rally in the oil price around the European close due to comments from OPEC secretary general Barkindo, Brent Oil (-0.61%) remains lower on the day. The market was down by as much as 2% however so the rally has been fairly strong in the past hour. Elsewhere Gold (-0.22%) is slightly lower with the latest US inflation data showing more increases in price levels.  

 Stock indices have gained today with the UK100 (+0.34%) recovering some of yesterday’s gains. The DE30 (+0.41%) is also enjoying a solid up day but across the Atlantic there’s not been much movement. The US500 (+0.10%) and US30 (+0.01%) are little changed on the day. 

Looking ahead Fed chair Yellen is set to speak at 8pm this evening before we have Australian employment data out overnight at 0:30. The main event tomorrow is the ECB with the rate decision at 12:45 expected to show no change but Mario Draghi’s press conference at 1:30 as always has the potential to drive markets. DOE crude oil inventories are out at 16:00, a day later than usual due to the bank holiday in the US on Monday. 


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