The Empire Fed kicks off North American trade. Key BOC report to come
Empire Fed is the first notable data point of the week
Welcome to the new week for traders in the Western hemisphere. It should be a lively week with earnings picking up and some highlights on the economic calendar.
The week starts with the Empire Fed at the bottom of the hour. The consensus is for a rise to +8.0 from +3.7. Manufacturing numbers have been all over the place for the past few months but they have begun to stabilize at solid levels. The dollar doesn't have much of a theme so far and this release could set the tone.
The Chicago Fed's Evans will also be on CNBC.
The Canadian dollar is off to a solid start with USD/CAD down a dozen pips. It will be a big day for the loonie starting with existing home sales and the MLS home price index for March both at 1300 GMT (9 am ET). The housing market is under the microscope right now.
The big one on the day for the loonie is at 1400 GMT when the BOC releases its latest Business Outlook Survey. This report always contains huge hints about what the central bank will do next and is a major CAD mover.
On the weekend, Poloz was asked whether he's done with hiking and said: "That's a very data dependent question."
"What matters is what forces are acting in the economy," and what's the level of interest rates that will bring the economy into balance, said Poloz, who was attending meetings of the International Monetary Fund. "That number is going to change every time something hits the economy, whether it's a positive thing or a negative thing."