Friday, March 15, 2019
CAD Stumbles as Market Prices in Rate Cut
The CAD is trading defensively into the North American open today and has fallen against most of the G10 currencies. Yesterday’s speech from the Bank of Canada’s Wilkins reiterated the expectation of increased growth in the second half of the year, but the market is pricing in a rate cut over the next 12 months. Fundamentals were limited to Manufacturing Sales which beat expectation coming in at 1.0% vs. 0.4%.
The USD started the morning soft but has since recovered on positive fundamentals against the G10 currencies. Prelim UoM Consumer Sentiment was a nice beat coming in at 97.8 vs. the expected 95.5 and a positive improvement from last month’s 93.8. JOLTS Job Openings was also a healthy beat at 7.58M against 7.27M.
The Euro is struggling to extend its recent stabilization as it has faced tough resistance at its current level. Fundamentals have been mixed with most offsetting each other and causing little as far as movement goes.
Equities are up across the board this morning: the Dow up 0.40%, the S&P up 0.29%, NASDAQ up 0.81% and the TSX up 0.40%. Crude Oil is down 0.41% this morning ($58.37) while Gold is up 0.56% ($1,303.44).
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