USD/CAD - Poloz to Speak at Noon

The Canadian dollar has now moved back to levels before the Bank of Canada's back-to-back rate hike in early September. Today, BOC Governor Stephen Poloz speaks at St. John's Board of Trade in Newfoundland at 12 p.m. EDT. The speech will be released 15 minutes prior and will be followed by a press conference at 12:55 p.m. ET. Poloz has to be careful as jawboning the loonie could be perceived as currency manipulation by other G10 central bankers. Staying ahead of inflation and the strength of the currency are concerns the central bank cited. Today's speech will be a major event risk as the market will want to price in BOCs next move on interest rates.

The U.S. dollar made significant moves against its G10 trading peers after Federal Reserve Chair Janet Yellen’s speech yesterday. The market is now pricing in a 69% probability that the Federal Open Market Committee will raise rates in December. Yellen's biggest takeaway was when she said that the Fed "should be wary of moving too gradually" when it comes to interest rates.

Two more Fed members speak today with James Bullard and Lyle Brainard taking the stage at 1:30 p.m. and 2:00 p.m. EDT respectively. The dollar index is up 0.45% to 93.42, its highest level in over a month. Durable Goods and Durable Goods ex Transportation were better than expected and inline at 1.7% and 0.2%, respectively. Pending Home Sales will be released at 10 a.m., and Crude Oil Inventories are out at 10:30 this morning. U.S. equity futures are pointing to a positive open.

Experts expect a range today of $1.2330 to $1.2426

The euro is still under pressure after continuing to drop for its third consecutive day. There is no event risk today, but there is a series of fundamentals and speakers tomorrow, which will hopefully keep the euro at bay. The European common currency is currently trading at $1.4534.

Commentators expect a range today of $1.4484 to $1.4571

Confedeation of British Industries Reported Sales in September jumped to their fastest growth in two years and released at 42 when the expectation was for 8. Bank of England Governor Mark Carney will be speaking tomorrow at the BOE Independence Conference, and he will have the opportunity to hint to participants whether they will likely follow through with any tightening before year-end. The pound is currently trading at $1.6610.

Traders expect a range today of $1.6510 to $1.6637

The Australian dollar remains weak and trades to a new multi-week low this morning despite positive Chinese industrial profit data. General U.S. dollar strength and falling gold prices should continue to weigh on the commodity currency. There’s no domestic data to report overnight, but investors are getting the Reserve Bank of New Zealand rate statement this afternoon at 4:00 pm EDT. The market is expecting the central bank to hold policy unchanged and keep target rate at 1.75%.

Oil (WTI): $52.06 U.S. per barrel

Gold: $1,283.91 U.S. per ounce

Silver: $16.74 U.S. per ounce

Copper: $2.9284 U.S. per tonne

Dollar Index: 93.01

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