Despite strong economic growth and the rise in average hourly earnings, there are no expectations for a rate hike at the November FOMC. There are expectations, however, for action at the December 18 & 19 meeting which, unlike this month’s meeting, will be accompanied by updated FOMC forecasts and a press conference. In an announcement slated for today Thursday and not the usual Wednesday, the FOMC is expected to hold its federal funds target range at a range between 2.00 and 2.25 percent with an implied target of 2.125 percent.
USD-CAD has continued to ply a narrow range around 1.3100, above the 12-day low seen last Friday at 1.3049 and below the two-month high see last Wednesday at 1.3170. Fresh seven-month lows in oil prices, coupled with Friday’s miss in Canada’s October jobs report, which contrasted with the strong U.S. jobs report for the same month, should keep USD-CAD underpinned.