The CAD is struggling again and continuing to retrace the rally that we say from May-July. The biggest hit this morning came from the rate cut by the RBNZ which was larger than expected (50bpts vs. 25bpts). This will no doubt encourage the Bank of Canada to look into a rate cut perhaps earlier than expected in an environment of globally coordinated accommodation. Fundamentals were limited to the Ivey PMI which came out ahead of the 52.7 forecast at 54.2
The USD is strengthening against most of the main pairs as markets are crumbling on uncertainty out of the US. Tweets from Trump saying that the Fed should be lowering rates further and holding them lower had the opposite effect on stock markets as the week has had the worst start of any in 2019. Overall trade uncertainty will no doubt continue to weigh on markets as the tariff war with China continues.
The Euro is up and benefiting as a safe haven with investors flowing out of the greenback. Fundamentals disappointed out of the Eurozone with both German Industrial Production and French Trade Balance numbers missing their respective marks by 1.0% and 1.19B.
Equities are mostly down this morning: the Dow down 0.90%, the S&P down 0.81%, NASDAQ down 0.03% and the TSX up 0.11%. Crude Oil is down 3.71% this morning (51.64) while Gold is up 1.69% ($1,499.30).