|09:00||EUR||Revised GDP q/q||0.6%||0.6%|
|11:45||EUR||Minimum Bid Rate||0.00%||0.00%|
|12:30||CAD||Building Permits m/m||2.5%||-1.5%|
|12:30||EUR||ECB Press Conference|
|15:00||USD||Crude Oil Inventories||-5.4M||4.1M|
|23:00||USD||FOMC Member Dudley Speaks|
|23:50||JPY||Final GDP q/q||1.0%||0.7%|
|Tentative (Sept 8th)||CNY||Trade Balance||321B||337B|
Asian markets took their cue from the steep selloff overnight on Wall Street, heading broadly lower as the financial sector got hit hard. Banking shares all across the Asian region fell in response to an overnight drop in government bond yields, and a weakness in the U.S. dollar.
European markets headed broadly higher Wednesday, although there was still some caution among traders over North Korea. The insurance sector remained under water as claims from hurricane Harvey are expected to be in the tens of billions, and with hurricane Irma, the strongest Atlantic hurricane ever, now threatening to bear down on Florida. Investors are now looking ahead to the European Central Bank monetary policy statement, with expectations that ECB president Mario Draghi will remain dovish, citing the strength of the Euro as a reason for maintaining the ECB bond buying program.
U.S. markets recovered from early losses and posted gains after U.S. lawmakers and President Trump agreed on increasing the debt ceiling, keeping the Federal government solvent for another three months. Investor sentiment remained cautious however as markets continue to grapple with the potential impact of hurricane Irma, lingering North Korean aggression, and the question of interest rates in the U.S.
The biggest even on Thursday was the Bank of Canada surprising the markets by raising their overnight interest rate by 0.25%, and setting it to 1.00%. Since the beginning of 2017, Canadian economic reports were mostly better-than-expected, which indicated a healthy and sustainable economy. Upon the decision, Canadian Dollar strengthened marketwide as it gained about 300 pips against the US Dollar and 350 pips against the Euro.
EUR/USD – The pair remained tightly range-bound on Wednesday, trading between the 1.1900 and 1.1950 level and finishing the session basically unchanged. Traders are cautious ahead of European Central Bank meeting to set monetary policy as they are hoping to hear news of the ECBs unwinding of their massive bond buying program. Although, ECB president is expected to strike a dovish tone, despite Deutsche Bank’s CEO stating Wednesday that the ECB should begin tapering now, regardless of the Euro’s strength.