Daily wrap up – 6 September

6 Sep 2017 10:02 PM

Today's events witnessed several important events and economic data that had a clear impact on market movements. At the top of these events, Bank of Canada's surprise decision to raise interest rates for the second time in a row this year to 1% in the wake of the previous meeting hike.

The Bank of Canada noted in its statement that future interest rate movements are not predetermined but will depend on economic data and developments in financial markets. Following the decision, the Canadian dollar rose strongly as the USDCAD fell to its lowest level in more than two years at 1.2136.

Uncertainty remains in global markets due to tensions over North Korea's nuclear test as well as market anticipation of what the ECB will meet when it meets tomorrow.

On the other hand, the pressure on the US dollar increased after Federal Reserve Deputy Governor Stanley Fischer announced his resignation mid-October, about 10 months before the end of his term. Fischer's early departure is an opportunity for US President Donald Trump to form the Federal Reserve sooner than expected.

Crude oil prices continued to recover after oil refineries returned to work after Hurricane Harvey was affected on production, so crude oil hit its highest level in nearly a month at 49.39$ a barrel. But some concern remains of Hurricane Irma, which is approaching the coast of Florida.


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