Yesterday, former governor of the Bank of Canada, Mark Carney, now head of its British counterpart, announced that he would maintain the key rate unchanged at 0.25% and was lowering his 2017 GDP growth forecast for England from 1.9% to 1.7% due to Brexit-based uncertainty. The news disappointed markets and the pound sterling tumbled by nearly 2 cents against the Canadian dollar during the day. This also was the biggest one-day decline in six weeks against the USD.
This morning, the week is ending with the most anticipated news, U.S. and Canadian employment figures. This data will help investors get a reading on the strength of the two economies. Remember that full employment is an important objective for the U.S. Federal Reserve. Based on the employment data of the U.S. private sector released Wednesday, U.S. employment figures could be lower than expected. The consensus is for 180,000 jobs to have been created in July in the U.S. and 12,500 in Canada during the same month.
Alexis Masson
Range of the day: 1.2500 – 1.2625