Investors Have Taken a Wait-and-See Attitude Before the Bank of Canada Meeting

The US dollar has continued to decline against a basket of major currencies. The US dollar index (#DX) closed in the negative zone (-0.45) yesterday. US President Donald Trump announced the possibility of an early lifting of some restrictions aiming to slow the coronavirus spread. So, the President wants to reopen production on May 1st. However, chief infectious disease expert says that this plan is "a bit overly optimistic."

Meanwhile, investors expect the Bank of Canada meeting, which will be held today at 17:00 (GMT+3:00). It is expected that the regulator will keep the key marks of monetary policy at the same level. It should be recalled that last month the regulator lowered interest rates from 1.75% to a record low of 0.25%. We recommend paying attention to the comments by representatives of the Central Bank. Financial market participants will also assess important economic releases from the US.

The "black gold" prices have fallen again. Currently, futures for the WTI crude oil are testing the $19.70 mark per barrel. At 17:30 (GMT+3:00), EIA crude oil inventories will be published.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+2.95%), #DIA (+2.44%), #QQQ (+2.35%).

The 10-year US government bonds yield rose slightly. At the moment, the indicator is at the level of 0.69-0.70%.

• - Data on retail sales in the US at 15:30 (GMT+3:00);
• - US industrial production at 16:15 (GMT+3:00);
• - Bank of Canada interest rate decision at 17:00 (GMT+3:00);
• - Fed's "Beige Book" at 21:00 (GMT+3:00).

by JustMarkets, 2020.04.15

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.