The CAD has fallen about half a cent back to the bottom of this week’s range as positive US data has dominated flows. Canadian fundamentals were limited to second tier ADP Non-Farm Employment Change which came in at 30.4, far higher than last month’s -36.7K print. Tomorrow’s Retail Sales numbers headline the AM releases.
The USD is mixed but up overall against most of the G10 currencies with impressive fundamental releases. The Philly Fed Manufacturing Index showed a massive beat over the 5.0 analysts were looking for coming in at 21.8. This is the best release since October of last year. Unemployment Claims were also supportive reporting in line at 216K.
The Euro has weakened in early trade on headlines that the ECB was looking to perhaps revamp their current inflation target. This may point to the central bank keeping policy settings looser for a longer stretch than first anticipated. A further fall of the EUR is unlikely at least in the near term and sideways trade is expected.
Equities are down across the board this morning: the Dow down 0.31%, the S&P down 0.03%, NASDAQ down 0.43% and the TSX down 0.01%. Crude Oil is down 2.26% this morning (55.32) while Gold is down 0.06% ($1,425.73).