Currencies trade in ranges as focus remains on next week’s data

No data out of Canada this morning leaves CAD vulnerable to US data and Fed speakers later on today. CAD has shown some volatility this morning but is trading right around its open price and up 0.3% from yesterday’s close. All eyes are on next week’s interest rate announcement, however with recent news and a stabilization of oil prices chances of a further interest rate cut by the Bank of Canada have all but evaporated.
A slew of data out of the US this morning has USD showing a bit of a mixed open. Chicago PMI came out a huge miss at a disappointing 45.8 against a forecast of 58.4. Pending Home Sales also came out a miss at 1.7% vs. the expected 2.5%. Preliminary GDP and Revised UoM Consumer Sentiment came out beats of 0.1% and 1.2 respectively. FOMC members Dudley and Fischer speak later today which could cause some volatility but sentiment says USD will be soft throughout the day.
EUR is strong this morning on the back of firmer than expected inflation data out of Germany and Italy. Fundamental data of late out of Europe has been stronger than expected and highlights an important theme for EUR moving forward. It is expected that a Fed rate hike along with negative interest rates in Europe will weigh on the EUR but for now it is still trading within its recent range.
Crude is up just over 1.5% already this morning but continues to show its disconnect from CAD and other energy based currencies. Crude is trading well within its recent range and has taken the back seat to more fundamental data as of late.
Equities are mixed again this morning with markets digesting US GDP numbers and other relevant data: the Dow is down 0.10%, S&P down 0.12%, NASDAQ down 0.06% and the TSX up 0.17%. Crude Oil is up 1.64% this morning ($48.96) while Gold is also up 0.31% this morning ($1,213.80).