Tuesday, January 8, 2019
The CAD has flattened out after impressive gains over the past several trading sessions. Tomorrow’s Bank of Canada rate announcement is no doubt the main focus of investors as analysts ponder the chances of a rate hike. News was in line today with Trade Balance numbers coming out at the expected -2.1B forecast.
The USD has stabilized against most of the G10 currencies after Powell driven weakness took over beginning last week. Ongoing trade negotiations with China remain in focus as a deal is hopefully able to be reached. News this morning was limited to second tier NFIB Small Business Index and JOLTS Job Openings which reported at 104.4 and 6.89M respectively.
The EUR is showing resilience to weakness even as German fundamental data points to a possible recession. Although the weak data did weigh on the EUR, we have seen modest gains from yesterday’s open. Bias to the upside is expected for the EUR at least for the near term.
Equities are mostly up this morning: the Dow up 0.52%, the S&P up 0.14%, NASDAQ down 0.01% and the TSX up 0.59%. Crude Oil is up 1.34% this morning ($49.17) while Gold is down 0.33% ($1,284.95).
To speak with a Foreign Exchange Specialist, or to get a free, no obligation quote on your foreign currency needs call 1.866.752.7135.