Daily digest market movers: Canadian Dollar treads water on quiet Wednesday

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  • The Canadian Dollar has been on a slow grind this week, finding thin gains against the Greenback. From the week's opening bids, the CAD is up a scant fifth of a percent against the USD.
  • The BoC’s Summary of Deliberations, slated for release midway through the US Wednesday session, is not expected to bring any new details to the BoC’s policy stance.
  • Risk appetite is stubbornly holding on balance as investors brush off a wave of cautious talking points from Federal Reserve (Fed) officials this week. Policymakers still want to see more signs of cooling inflation in the US before committing to even discussing rate cuts.
  • Interest rate markets are still staunchly committed to hopes for a September rate cut. According to the CME’s FedWatch tool, rate traders are pricing in nearly 70% odds of at least a quarter-point rate trim from the Federal Open Market Committee (FOMC) at the September 18 meeting.
  • Before Friday’s US PMI print, Thursday will deliver a week-on-week update to US Initial Jobless Claims, a popular bellwether for near-term economic performance.

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