CAD Continues to Surge Post BoC

Thursday, September 7, 2017

Good morning,

The CAD is continuing to show significant strength up over 2.5 cents since the beginning of the week.  Disappointing fundamental releases have failed to slow the post BoC rate raise momentum.  Building permits fell 3.5% compared to the expected 1.5% fall, a far cry from last month’s 4.4% gain.  Ivey PMI was also a miss coming in at 56.3 vs. the forecast 61.3.

The USD is down against every one of the G10 currencies and struggling to find its footing.  Future Fed rate raises remain one of the main focusses of investors who question further tightening considering the underperforming US economy.  Unemployment Claims surged to 298K vs. the expected 245K while Crude Oil Inventories were a build of 4.6M barrels.

The EUR is relatively range bound but up on the day even with Draghi expressing concerns about the recent strength.  The ECB announcement earlier this morning brought no change to current policy.

Equities are mixed this morning: the Dow down 0.18%, the S&P down 0.05%, the NASDAQ up 0.08% and the TSX up 0.01%.  Crude Oil is down 0.37% this morning ($48.98) while Gold is up 0.99% ($1,347.42).

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