The CAD is consolidating its gains from the past week and trading in an extremely tight range. News was absent out of Canada and overall market sentiment is dominating flows and movement. Analysts still believe that the Loonie is fundamentally undervalued especially with the FOMC continuing to elude to rate cuts later in the year.
The USD is mixed vs. most of the G10 currencies into the North American open. Fundamentals were in line with expectations this morning doing little as far as movement goes. Core PPI was in line at 0.2%, while PPI was in line at 0.1%. Second tier NFIB Business Index released just above the 102.3 forecast at 105.0.
The Euro is quiet and trading very close to the range we have seen throughout the week. ECB Governor Rehn, who may be Draghi’s successor, made comments that the central bank was ready to use everything in its arsenal to combat economic weakness through the Eurozone. Low inflation remains a concern and normalization may continue to be kicked down the road.
Equities are up across the board this morning: the Dow up 0.23%, the S&P up 0.22%, NASDAQ up 0.42% and the TSX up 0.19%. Crude Oil is up 0.30% this morning (53.42) while Gold is down 0.15% ($1,325.96).