CAD Retraces Early Gains

Tuesday, July 31, 2018

 

The CAD has retraced its early morning GDP driven gains and is now trading just below levels seen yesterday. GDP numbers were strong posting a solid 0.5% gains for the month compared to the 0.3% forecast. RMPI data was down coming in at 0.5% compared to the expected 2.7%, while second tier IPPI was a narrow beat of 0.2%. Fundamentals are limited for the remainder of the week until Friday’s Trade Balance numbers are released in the AM.

 

The USD mixed against most of the G10 currencies into the North American open with a plethora of news releases today. CB Consumer Confidence was a beat coming in just ahead of the 126.5 forecast at 127.4 while Chicago PMI was also a nice beat up from its 61.9 expectation at 65.5. Employment Cost Index was a narrow miss of 0.1% while Core PCE Price Index and Personal Spending were in line at 0.1% and 0.4% respectively.

 

The EUR is climbing on higher than expected inflation data, extending its recent recovery. ECB rate hike expectations are beginning to build as we draw closer to 2019 with CPI data posting a 5 year high.
Equities are up across the board this morning: the Dow up 0.49%, the S&P up 0.37%, NASDAQ up 0.49% and the TSX up 0.18%. Crude Oil is down 1.98% this morning ($68.74) while Gold is also down 0.11% ($1,230.20).

 

 

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.

To sign up to receive Daily Market Updates or a quote, fill out the form below and a Foreign Exchange Specialist servicing your region will contact you within the business hour.

Fields marked with an * are required