CAD Giving up recent gains

Tuesday January 9, 2018

The loonie is giving up some recent gains with housing starts data coming in as a slight miss this morning. Employment data is suggesting the Bank of Canada may raise interest rates next week, but with the recent strength in the CAD, this move seems already priced in. With no major releases, eyes will be on oil prices and second tier economic data for the remainder of the week.

The USD is firming across the board despite a 5.88 million jobs opening and labor turnover post versus the expected 6.05 million. Economic releases are weighted to the end of the week with PPI data Thursday and important Inflation and Retail Sales releases Friday.

Trade balance numbers in France were disappointing, offsetting good German economic data, and putting downward pressure on the Euro. Overall Eurozone unemployment remained at 8.7%. After a recent strong rally the EUR remains under corrective pressure as traders take profit.

Equities are up across the board this morning: the Dow up 0.17%, the S&P up 0.02%, the NASDAQ down 0.1% and the TSX up 0.09%. Crude Oil is up 0.36% this morning ($61.95) while Gold is down 0.55% ($1,313.20).

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