An otherwise light calendar will have markets fixated on any further developments concerning the Iran war and the start of United States-China bilateral meetings later Wednesday, says Derek Holt, Vice-President & Head of Capital Markets Economics at Scotiabank, in his morning note.
"Markets are starting off the day in rather bland fashion. Oil is meh. Sovereign bond yields are little changed. Ditto for equities. The dollar is a touch firmer but flat against most crosses. Markets are clearly waiting to seize on new information," he adds.
The Bank of Canada releases its Summary of Deliberations (at 1.30pm ET) that attempts to reflect the dialogue conducted in the lead up to the April 29 rates decision, Holt notes. "It was forced upon the BoC by the IMF that demanded improved transparency, but it falls short of more useful minutes. I expect absolutely nothing from today's release given abundant communications on game day in the statement and the MPR and press conference, then media interviews, and in two rounds of parliamentary testimony. It will just be a re-hashed exercise in what you should already know," Holt says.