BEFORE THE BELL: Loonie pulls ahead riding oil boost and interest rate outlook; NAFTA deadline pressure mounts
At the start of the last September trading day, the Loonie is gaining ahead of what could be a volatile October. Analysts say it’s very likely the Bank of Canada will hike the interest rate next month after Governor Stephen Poloz suggested the country’s economic uncertainty wouldn’t sway them from a plan to gradually increase the rate. Following these remarks the Loonie is pushing to 76.80 cents US.
But, as a US NAFTA deadline nears, Canada’s currency could be face pressure if Donald Trump follows through with auto tariff threats.
Meanwhile, Wall Street is expected to get a boost today as investors are temporarily distracted from US-China trade war worries by the US Federal Reserve’s plans to keep raising interest rates as well.
Oil prices continue to soar as the world prepares for Iranian crude exports to dry up in November over US sanctions. The price for US crude is up to 72.13 a barrel.
Embattled Tesla CEO Elon Musk is facing more controversy as US officials are suing him over claims of fraud. The US Securities and Exchange Commission claims Musk lied when he claimed he had financial backing to take the company private. Tesla shares have plummeted to 269 in pre-market.