The FOMC Minutes are due at 2 pm ET
TD: Market To Assess Scope For Hikes Beyond This Year; USD Downside Risk Vs CAD.
The focus today turns to the September FOMC minutes. Indeed, with markets largely pricing a move before year-end, we think markets will assess the scope for future rate hikes beyond this year. We doubt the minutes will signal broader intentions for next year, in particular with the debate around the decline in the r*. We think leaves the greenback exposed to downside risks into the event with CAD a likely beneficiary of any USD correction. The level of oil prices is typically consistent with USDCAD below 1.30, but oil prices are competing with steeper curves and waning risk appetite. Intraday support for USDCAD seen near 1.320.
