The CAD has made slight gains from the levels that we saw through the has made slight gains from the levels that we saw through the trading day yesterday but is slowly drifting back to where it opened the week. As expected the Bank of Canada held rates steady this morning and reiterated the health of the Canadian economy. Both inflation and GDP numbers continuing to chug along close to the central bank’s target numbers. Trade Balance numbers posted a miss coming in at -1.1B vs. the expected 0.2B.
The USD dropped fairly sharply against most of the G10 currencies and off of yesterday’s highs. Focus today is on Fed speak with speeches coming from FOMC members Bullard, Williams and Evans later today. Fundamentals were limited to second tier Trade Balance numbers which reported just ahead of the -54.2B forecast at 54.0B.
The Euro has rebounded slightly in response to stronger than expected PMI numbers out of both Germany and France. ECB President nominee Lagarde stated that although inflation was far too low and that accommodative policies would be necessary, the central bank had to be mindful of the possible negative effects of significant policy changes.
Equities are up across the board this morning: the Dow up 0.66%, the S&P up 0.66%, NASDAQ up 0.86% and the TSX up 0.60%. Crude Oil is up 3.56% this morning (55.86) while Gold is also up 0.05% ($1,547.82).