Wednesday, January 9, 2019
The CAD has given up most of the brief strength it saw into the Bank of Canada rate announcement this morning. The central bank held the overnight rate steady and stated that GDP growth is expected to slow through the first quarter of this year but expected to recover into the later part of the year. Second tier Housing Starts were a slight beat coming in ahead of the 207K forecast at 213K.
The USD soft against most of the G10 pairs and showing losses against many commodity based currencies. Fundamentals were absent aside from FOMC Member Evans’ speech this morning and Rosengren’s later this morning. Crude Oil Inventories showed a draw of 1.7M barrels compared with the expected 2.4M barrel draw.
The EUR is quiet and trading near the upper end of its recent range and just below its 100 day moving average. Eurozone showed a drop to 7.9% but was offset by a decline in imports and exports from Germany.
Equities are up across the board this morning: the Dow up 0.19%, the S&P up 0.19%, NASDAQ up 0.29% and the TSX up 0.44%. Crude Oil is up 2.05% this morning ($50.80) while Gold is also up 0.40% ($1,290.57).
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