CAD Makes Solid Gains Ahead of FOMC Meeting

Wednesday, August 1, 2018


The CAD is extending this week’s rally this morning ahead of the Fed rate announcement later today. News was limited to Manufacturing PMI which was down from last month’s 57.1 coming in at 56.9. The next release out of Canada comes in Friday’s Trade Balance numbers.
The USD is fading its gains that were seen through the Asian session into the North American open ahead of the high risk FOMC meeting. News was a bit of a mixed bag this morning doing little to curb this morning’s weakness. ADP Non-Farm Employment Change was up from the 186K forecast at 219K, while ISM Manufacturing PMI fell short of the 59.4 expectation at 58.1.
The EUR has consolidated in its recent trading level and is trading in a relatively narrow range. Manufacturing PMI’s throughout the Eurozone were in line with expectations, supporting the notion that growth throughout Europe is stabilizing. Sentiment is also recovering with ECB rate hike expectations continuing rise.
Equities are mostly up this morning: the Dow up 0.25%, the S&P up 0.25%, NASDAQ up 0.75% and the TSX down 0.17%. Crude Oil is down 0.95% this morning ($68.11) while Gold is also down 0.52% ($1,227.20).

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