CAD Trades Within this Week’s Range

Wednesday, March 7, 2018

The CAD has lost some of the strength we saw early in the day yesterday and is trading near the middle of this week’s range. This morning’s BoC rate announcement will be the focus of many investors, although no change is expected. Trade Balance numbers were a healthy beat coming in at -1.9B vs. the expected -2.5B

The USD is strengthening against most of the G10 currencies with long term risk aversion putting upward pressure on the dollar. Fundamentals were positive with ADP Non-Farm Employment Change beating the 199K estimate at 235K. This points to a healthy overall number which will be released Friday AM.

The EUR remains well supported this morning and is trading well within its recent range. Rather than from fundamental releases, the EUR is finding support from investors’ risk aversion from the USD and the economic uncertainty ahead after the resignation of Gary Cohn. The EUR should hold steady and trade in a relatively tight range at least for the near term.

Equities are mixed this morning: the Dow down 0.76%, the S&P up 0.26%, the NASDAQ down 0.40% and the TSX up 0.03%. Crude Oil is down 0.81% this morning ($62.09) while Gold is also down 0.27% ($1,331.00).

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