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The Bank of Canada is today at 15:00 (GMT) interest rate decision. According to the forecast the rate will remain at the previous level of 0.5%. However, the Bank's decision may not coincide with the forecast. The Bank of Canada supports the continuation of soft monetary policy, which has been repeatedly stated by representatives of the Bank. We do not exclude its further easing.
Weekly data from the U.S. Department of energy, which will be released on Wednesday are expected to show a decrease of oil reserves in the United States. In early Asian trading, the oil price fell. According to a report by the American petroleum Institute (API), crude oil inventories in the U.S. in the week 21-27 November, probably rose by 1.6 million barrels. According to the forecast of the Ministry of energy, U.S. oil reserves decreased by 1.125 million barrels.
The January futures for Brent oil on ICE Futures in London have fallen in price on 0,14% to 44,30 USD per barrel.
The main world oil producers will increase production. The price of Brent crude oil fell by about 40% compared with the same period of the previous year.
The problem of the oversupply of oil on the world market will persist in the medium term. This will put pressure on oil prices and the canadian dollar.
Today also should pay attention to the news from the USA. This is the speech of fed officials, including fed chair Janet Yellen at 13:30 (GMT) and 17:25, data on the change in the number of people employed in the U.S. in November (ADP) at 13:15, economic review 19:00.
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