Wednesday, August 05, 2015
Excellent Trade Balance numbers out of Canada saw the CAD climb almost a full cent early this morning before solid ISM Non-Manufacturing PMI numbers out of the US caused an almost complete retracement. Trade Balance out of Canada was extremely encouraging coming out at -0.5B vs. the forecast -2.8B showing the best numbers since late last year. The next big releases out of Canada will come Friday when Employment data and Building Permit numbers are released.
A number of mixed data points out of the US saw a fall from fresh multi-year highs early this morning followed by an almost complete retracement upwards. Trade Balance numbers were a fairly large miss coming out at -43.8B against the expected -42.8B. ADP Non-Farm Employment Change was also a disappointing miss being reported at 185K compared to the forecast 216K pointing to much smaller employment growth in the non-farm sectors. Some positive news coming out in the form of ISM Non-Manufacturing PMI numbers being reported at 60.3 against the expected 56.3, the best numbers since August 2005.
The EUR is feeling pressure for the third consecutive session falling to two week lows as the market looks to relative policy difference between it and the Fed. Fundamental releases have provided minimal movement as of late. The biggest near-term risk to the EUR lies with Friday's nonfarm payrolls out of the US.
Equities are up across the board this morning: the Dow is up 0.56%, S&P up 0.79%, NASDAQ up 1.25% and the TSX up 0.74%. Crude Oil is up 1.03% this morning ($46.21) while Gold is down 0.73% ($1,082.70).