The CAD has edged slightly lower today on dovish comments from Wilkins yesterday and with inflation numbers failing to beat expectations. CPI m/m reported in line with the 0.3% that analysts had forecast but has done little to curb the recent Loonie weakness. Common, Median and Trimmed CPI numbers reported at 1.9%, 2.2% and 2.1% respectively.
The USD has gained slightly against most of the G10 currencies on trade threats from Trump regarding the ongoing battle with China. Doubt of a deal came as China remarked that few of its citizens believed that a deal with the US would be possible. The Fed meeting minutes are being released later this morning and may provide some basis for movement.
The Euro showed signs of a rally but has since lost momentum as it has traded along with market tone which currently favors the USD. It is likely that we will see range bound trading ahead of Friday’s PMU numbers out of the Eurozone, Germany and France.
Equities are down across the board this morning: the Dow down 0.39%, the S&P down 0.12%, NASDAQ down 0.15% and the TSX down 0.07%. Crude Oil is up 0.85% this morning (55.68) while Gold is down 0.05% ($1,471.75).