Tuesday, June 5, 2018
Overnight developments in NAFTA are weighing on the loonie this morning. US Senate Majority Whip John Cornyn said there may not be time this year for congress to approve a new free trade agreement. Despite better than expected labor productivity numbers (-0.3% vs exp. 0.3%) the loonie is down versus all majors on this NAFTA news. Trade balance numbers tomorrow and employment change Friday will be the next market moving releases for the CAD.
The USD is flat versus most currencies. Data was positive with ISM Non-Manufacturing PMI beating expectation at 56.8 versus 55.7 and job opening and labor turnover was a positive +6.70 million but is not moving the dollar. Markets are watching the growing trade tension between the United States and major trading partners before the US Fed meeting June 13th.
After several weeks of decline the Euro is firming. Major Eurozone countries released their purchasing manager’s index data and it was generally in line with expectations but total Eurozone retail sales numbers were a miss. European political risk appears muted even as new Italian Prime Minister Giuseppe Conte spoke and promised radical reforms.
Equities are mixed this morning: the Dow is down 0.22%, the S&P is flat at 0.01%, the NASDAQ is up 0.29%, and the TSX is up 0.64%. Crude Oil is flat at 0.03% ($64.77) and Gold is down 0.04% ($1,296.80).
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