CAD Consolidates in Narrow Range

Thursday, September 6 2018

 

The CAD has consolidated within a very tight range as we open North American trading today. Yesterday’s BoC decision and message conveyed a cautious tone and a plan that would largely be based on the outcome of the ongoing NAFTA negotiations. Fundamentals out of Canada were limited but disappointed as Building Permits failed to hit the 1.1% forecast coming in at -0.1%.

 
The USD is mixed against most of the G10 currencies with the JPY and CHF outperforming on the morning. Fundamentals were mixed today with a large miss coming in ADP Non-Farm Employment change (expected: 195K vs. actual: 163K). ISM Non-Manufacturing PMI was a narrow beat coming in just ahead of the 56.8 expected by analysts at 58.5.

 
The EUR is quiet and trading sideways even with disappointing German factory orders headlining the morning news. Selling pressure has prevented any sort of convincing rally for the EUR as of late and an ease back may be likely in the near term.

 
Equities are mostly down this morning: the Dow down 0.14%, the S&P down 0.33%, NASDAQ down 1.01% and the TSX up 0.04%. Crude Oil is down 0.16% this morning ($68.61) while Gold is up 0.68% ($1,204.84).

 

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