The CAD has made slight gains but is still trading in the bottom half of this week’s range. News was limited but disappointed with the ADP Non-Farm Employment Change posting an abysmal loss of 22.6K jobs, this compared with last month’s gain of 25.7K jobs. Bank of Canada Governor Poloz is speaking throughout the morning.
The USD is struggling and has dropped against most of the G10 currencies as China’s chief trade negotiator has said that he is cautiously optimistic that a trade deal will be agreed upon. Fundamentals were mixed with the Philly Fed Manufacturing Index posting a beat of 3.4, while Unemployment claims reported at 227K vs. the expected 215K.
The Euro traded with the market yesterday making modest gains on the back of broad USD weakness. Gains are also being supported on investor expectations that the ECB will not roll out another rate cut or provide any further stimulus any time soon. Tomorrow’s PMI numbers will be important for the ECB’s upcoming policy decision.
Equities are down across the board this morning: the Dow down 0.38%, the S&P down 0.35%, NASDAQ down 0.36% and the TSX down 0.18%. Crude Oil is up 1.46% this morning (57.84) while Gold is down 0.22% ($1,468.36).