CAD Surges on Improving NAFTA Talks

Wednesday, September 12 2018

 

The CAD is surging and up over a percent and a half since its lows yesterday. Gains have been driven mostly by constructive NAFTA headlines from Trump, mainly on progress in dairy negotiations. Crude Oil Inventories showed a draw of 5.4M barrels, compared with the expected draw of only 1.3M. Crude continues to trade just over the $70 mark.

 
The USD is little changed against most of the G10 currencies in what continues to be a quiet trading day for the green back. News disappointed this morning with both Core PPI and PPI numbers missing their respective 0.2% forecasts by 0.3%.

 
The EUR is again trading in a tight range but overall soft do to ECB headlines. Overall growth forecasts are expected to be downgraded for tomorrow’s policy meeting with inflation projections remaining unchanged. It is largely believed that asset purchases will be reduced into the end of the year and that tightening will begin next year.

 
Equities are mostly down this morning: the Dow up 0.26%, the S&P down 0.18%, NASDAQ down 0.61% and the TSX down 0.51%. Crude Oil is up 2.40% this morning ($70.91) while Gold is down 0.08% ($1,197.64).

 

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