CAD Tumbles to Fresh Lows

Tuesday, June 19, 2018

 

The CAD has tumbled to a fresh low now trading at levels not seen since early last year. Risk aversion due to rising trade tension between Trump and China is the main driver of the large move this morning. No news out of Canada to report on this morning is not helping the Loonie out of its recent slump.

 
The USD is strengthening against most of the G10 currencies this morning with the exception of the JPY. Pending trade tariffs against China totalling an astonishing $200bn is the main cause of the strength today. News was mixed out of the US with Building Permits missing by 0.05M and Housing Starts coming in a beat of 0.04M.

 
The EUR has weakened this morning in response to ECB President Draghi’s dovish comments regarding monetary accommodation in the future. We are seeing downward momentum towards the May lows with little support expected if we push through this key level.

 
Equities are down across the board this morning: the Dow down 1.32%, the S&P down 1.00%, NASDAQ down 1.01% and the TSX down 0.54%. Crude Oil is down 2.08% this morning ($64.48) while Gold is also down 0.36% ($1,273.66).

 

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