The Day Ahead: Top 3 things to watch – Here’s a preview of the top 3 things that could rock markets tomorrow

Canadian inflation in the spotlight

Canadian data due Friday, is expected to show the pace of inflation for July remained unchanged at 0.1%, from the prior month.

The loonie has made significant gains against the greenback, following the Bank of Canada’s decision to raise rates for the first time in seven years in July.

Gains in the loonie, however, have come under pressure in recent weeks as falling oil prices has pressured the oil-sensitive loonie.

Ahead of the data, USD/CAD rose by 0.44% to C$1.2675.

Baker Hughes rig count

The weekly instalment of drilling activity from Baker Hughes on Friday, will provide investors with fresh insight into U.S. oil production and demand, after the number of active drilling rigs has slowed in recent weeks.

The weekly rig count is an important barometer for the drilling industry and serves as a proxy for oil production and oil services demand.

At Thursday’s settlement price, crude futures remained on track to post their third-straight weekly loss amid concerns that rising U.S. production could add to glut in supply, narrowing expectations that oil supply and demand will rebalance during the second half of the year.

Gold to hit $1,300?

Gold prices continued to edge towards the key $1,300 level amid a fall in investor expectations of a third rate hike later this year, following the release of somewhat dovish minutes from the Federal Reserve’s July meeting.

The minutes showed Fed members were divided on the outlook of monetary policy tightening and suggested that the central bank could afford to wait on further rate hikes until the trend of slow inflation appeared transitory.

Gold futures tacked on $9.92 to $1,292.84.