Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Wednesday sees a quiet data session, with largely second tier releases on both sides of the Atlantic, although much focus will be on the Bank of Canada's policy decision at 1500BST.
Early session data sees German trade data due for release at 0700GMT, the same time Norway's latest GDP data will cross the wire. At 0745GMT, French trade data is due. Norway's mainland m/m GDP is expected to grow 0.2% in April, up from a 0.5% contraction in March.
The main release is expected at 1500BST, when the Bank of Canada policy decision is due.
According to our Ottawa bureau, the BOC may signal it remains on a path to the further tapering that some investors expect in the third quarter, holding its rate and asset purchase settings for now as it juggles a short-term growth slowdown and faster inflation. After a flash April GDP decline of 0.8% and first-quarter expansion that slightly lagged the BOC's estimate, investors will watch for signs the central bank agrees the economy will recharge in coming months as a majority of Canadians get their first Covid shots, the housing market booms and exporters benefit from surging commodity prices.
The policy rate is expected to stay at a record low 0.25% according to all economists surveyed by MNI, and the pace of federal bond purchases is also seen remaining at CAD3 billion a week. The decision is due at 10am EST and comes without a new economic forecast or press conference. Those are next due in July, which about half the market sees as the earliest chance for a taper to CAD2 billion.
With the Fed and the ECB in post-meeting black out periods and the Bank of Canada in a mid-cycle meeting, there are no policymakers slated to speak publically Wednesday.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.