Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.3660-1.3910
Euro 1.6060-1.6310
Sterling 1.8300-1.8550
WTI Oil (opening level) $56.19
The CAD/USD is opening at 1.3784 ( 0.7256 )
Headlines
· The Fed's Waller, who President Trump recently interviewed for the position as next Fed Chair, sees a "very soft" labor market but is optimistic about 2026. Inflation expectations are stable, with rates above target but expected to decrease. He sees no rush to cut rates, despite being 50-100bps over neutral. The Fed's Bostic expects solid GDP growth next year, with employment trends uncertain.
· Business services and manufacturing expanded, while information media and telecommunications declined. Exports and investments rose, with household spending up slightly. GDP increased 1.3% year-on-year after a Q2 drop.
· Euro Area's annual core inflation held at 2.4% in November 2025, consistent with estimates and unchanged for three months. Since May's near four-year low of 2.3%, it has stabilized, suggesting no further ECB rate cuts. Monthly core prices decreased by 0.5%.
· UK inflation fell to 3.2% year-on-year in November 2025 for both headline and core inflation, the lowest in eight months and both were below expectations for 3.5% and 3.4%, respectively. Significant price drops occurred in food, especially bread and cereals, while alcohol and tobacco reached their lowest since December 2022. Transport, housing, and utility costs decreased, and services inflation eased. Clothing prices fell, leading to a 0.2% month-on-month CPI decrease.
Key Points
· Equities: Global equities slide as US and Europe retreat on AI worries, while Hong Kong and mainland China rebound
· Volatility: VIX higher, CPI and central banks in focus
· Digital assets: BTC steady, ETH softer, IBIT inflows vs ETHA outflows, regulatory tone easing
· Currencies: USD chops back to neutral, JPY remains weak ahead of key Bank of Japan meeting Friday.
· Commodities: Platinum at 17-year high on hard-asset demand; wheat nears multi-year lows; Brent rebounds above USD 60 on supply risks
· Fixed Income: US Treasuries steady, front end yield lower on weak risk sentiment. JGB’s hold breath for Bank of Japan meeting Friday.