Daily Market Update

Canadian Dollar

Loonie Up as Canadian GDP Beats Expectation

Posted on June 29, 2018
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Friday, June 29, 2018   Canadian GDP grew 0.1% versus an expected 0.0% and is driving the loonie to weekly highs. The associated business outlook survey was also more positive than expected and markets are now pricing a 70% chance of an interest rate increase on July 11.  Highlights included robust foreign demand for Canadian goods and improvements in commodity prices. Canadian raw material prices were up 3.8% versus an expected 1.2% showing higher than
Canadian Money

Loonie Strong as July Bank of Canada Rate Hike Looms

Posted on June 28, 2018
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Thursday, June 28, 2018   The loonie is strong this morning as markets fully digest the meaning of Stephen Poloz’s speech yesterday as July Bank of Canada rate hike expectations are firming. Oil prices continue to rise aiding the CAD resilience. The Bank of Canada will release monthly GDP (expected at 0.0%) and their business outlook survey tomorrow.   The US dollar is trading mixed as a result of morning data releases. US final first
Canada Oil

Oil Rally Driving Loonie Higher

Posted on June 27, 2018
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Wednesday, June 27, 2018   Renewed strength in the price of oil is driving the loonie higher this morning. Falling crude stockpiles and US demands for countries to stop buying Iranian oil are contributing to this rally. There are no scheduled Canadian data releases today. However, Bank of Canada Governor Poloz will speak on the technical of Central Bank communication with markets. Although analysts do not anticipate his speech to explicitly indicate the Bank of
Canadian Dollar

Loonie Range Bound Ahead of Poloz Speech

Posted on June 26, 2018
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Tuesday, June 26, 2018   The loonie is trading flat with a lack of domestic data and markets digesting the impact of the inflation and retail sales number misses from Friday. All focus will be on Stephen Poloz and his speech on Central Bank transparency and trust tomorrow. He may give insight into the Bank of Canada’s monetary plan for 2018. An interest rate increase on July 11 was priced at nearly 80% a few
Canadian Piggy Bank

Loonie Under Pressure as Trump Creates More Trade Tension

Posted on June 25, 2018
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Monday, June 25, 2018   The loonie is falling to start the week. After weak CPI and retail sales data Friday, expectations of a July Bank of Canada interest rate hike are falling. Gov. Poloz will be speaking Wednesday and may provide the market with more direction. Trade risks with the United States are elevated again with Trump tweeting over the weekend threatening reciprocity against countries who enact tariffs and barriers. Canadian GDP will be