Canadian dollar remains firm against the US dollar, with the absence of any fresh news meaning markets have been happy to continue to lean in to the recent trend of CAD strength. Nothing out today either means interest will likely only begin to renew tomorrow when Bank of Canada governor Tiff Macklem is due to speak at a forum in Toronto.
US midterm election results started filtering through overnight, with no clear outcome as yet. What has become clear is that speculation of a wave of Republican victories has failed to materialise, with a strong showing for the Republicans nonetheless still looking likely. Minor data regarding oil inventories is the only data point today, in what is likely to be a quiet day of trading.
Eurozone retail sales posted positively yesterday, showing 0.4% month-on-month growth, which, amidst wider spread US dollar selling, proved enough to take the EURUSD midmarket back through the parity threshold. Amongst individual member states, figures were particularly positive in Germany, which showed a 0.9% month-on-month growth. No news releases on the calendar today means that trading volumes will likely continue to be thin.
Bank of England Chief Economist Huw Pill said that there was “still more to do” to tackle inflation, implying that the bank will continue to hike interest rates despite the forecast of a recession. If the central bank does hike rates at its next meeting in December, it will mean they have done so at every policy meeting since the start of the year, as the bank tries to get hold of inflation levels that are the highest since the 1980’s. The pound reacted positively to the hawkish rhethoric, once again gaining slightly against both USD and EUR. Today, two more BoE monetary policy members are due to speak separately, but otherwise little of note on the calendar.