In a context devoid of major events, the greenback managed to gain ground yesterday against the other major currencies. Among the sources of support, one could note the impression that progress is being made with President Donald Trump’s often-mentioned fiscal plan and his remarks that he is apparently close to announcing his recommendation as chair of the U.S. Federal Reserve (Fed). Among the favourites are Stanford University economist John Taylor, current Fed governor Jerome Powell and current chair Janet Yellen. The decision may be put off a little, however, as Trump has only committed to making it before he leaves for Asia on Nov. 3. Yellen’s mandate ends on Jan. 31.
Crude oil prices (WTI) are trying to climb again, breaking through the USD 52 mark this morning in reaction to comments by OPEC, which wants to negotiate to keep output down until the end of 2018. It remains to be seen how the cartel will be able to reassure markets when a return to normal is planned.
Finally, federal Finance Minister Bill Morneau will deliver his economic update today at 4:00 p.m.
Stéphane Goulet
Range of the day: 1.2590 – 1.2700