The greenback remained under pressure and the USD/CAD pair broke through the 1.2500 level further to the release of the minutes of the most recent Federal Open Market Committee meeting, which were devoid of surprises.
According to the members of the U.S. Federal Reserve (Fed), job creation and economic growth are living up to expectations despite the short-term impact from tropical storms.
However, Fed members are not convinced that inflation will rise above the key 2% level in the short term. Certain members brought up the fact that technological advances could intensify and have an impact on competitiveness and prices over the longer term.
For the moment, a December key rate increase remains on the table with an implied probability of 80%.
While we await important U.S. economic indicators tomorrow regarding Retail Sales, today, we’ll be keeping an eye on the Producer Price Index in the United States and the Teranet National Bank House Price Index to take the pulse of the Canadian real estate market.
Mark Donohue
Range of the day: 1.2425 – 1.2535