- Inflation data from Canada for August surprised the market. CPI inflation rebounded to 4.0% and core inflation to 3.3% on an annualised basis. Although the BoC has already completed hiking cycle, the market is now pricing in a 40% probability of a hike in October (before the CPI release it was 23%).
- USDCAD was clearly losing ground today, even with the US dollar stable. The pair fell from around 1.35 to levels even below 1.34.
- The CAD was also supported by, among other things, further rising crude oil. Brent tested the vicinity of the $96 level today, being the highest in 10 months. Many institutions indicate that the $100 level is a matter of time, but due to fragile demand, the price may not remain at this level.
- OPEC+ representatives have indicated that a voluntary cut agreement is in place, but there is to be a review every month. If there are problems with demand, some production could be restored.
- It was this speculation that led to a marked pullback in prices at the end of the day.
- Eurozone CPI inflation came in marginally below the preliminary reading of 5.2% (preliminary 5.3% y/y)
- Data from the US housing market performed very mixed today. Housing starts fell by as much as 11.3% m/m, but on the other hand, building permits rose by 6.9% y/y
- NATGAS rose around 2.85 today, linked to further maintenance work at Norway's largest gas field Troll
- EURUSD continued Monday's rebound but retreated below the 1.0700 level again at the end of the day, with yields rising
- On Wall Street, the day before the Fed decision, visible selling pressure is observed. The US100 loses almost 0,6%, while the S&P 500 is down 0.55%.
- Cryptocurrencies continue to rise today on the wave of further reports of blockchain technology adoption among financial institutions, increasing debt in the USA, and upcoming regulations. Bitcoin gains 1.3% and is trading at around $27,200 level.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
