Fundamental Analysis

BoC Holds Rates Steady, ADP Payrolls Rise More Than Expected

Typography

It was a busy day for the markets as the economic calendar was packed with key economic releases. Data from ADP showed that private payrolls in the U.S. rose 190k for the month of November. This was higher than the forecasts of 189k. No revisions were made to previous month's print which was at 235k.

The Bank of Canada held the overnight rate steady at 1.0%. However, the BoC's dovish tone dampened expectations of future rate hikes. This sent the Canadian dollar weaker on the day.

Oil prices were also weaker despite the weekly inventory report showing a larger than expected draw in U.S. stockpiles. Crude oil futures fell 2.9% on the day to close at $55.96 a barrel. This came data showed that U.S. crude oil production increased by 25,000 barrels per day to 9.71 million barrels per day.

Looking ahead, the economic calendar is relatively light today. The Eurozone's revised GDP data is due to show an unchanged quarterly growth rate of 0.6% while Canada's Ivey PMI numbers are due to come out later. The ECB President Mario Draghi is scheduled to speak later during the day.

Orbex
At Orbex, we are dedicated to serving our clients responsibly with the latest innovations in forex tools and resources to assist you in trading.
More from the author