Thursday, January 10 2019
The CAD is stable with monthly building permit data coming in at 2.6% beating the expectation of -0.5%. Markets are still digesting yesterday’s comments and release from Stephen Poloz trying to figure out the pace of future interest rates in Canada against a backdrop of strengthening industrial activity but a weak oil and gas sector. A lack of meaningful economic data until January 18 may leave the loonie vulnerable to external political forces and data releases.
The USD is holding up despite ongoing political issues including ongoing Government shutdown and trade deal uncertainty. Unemployment claims were a slight beat at 216k vs. the 226 estimate. Federal Reserve speeches dominate the news for the day. FOMC member Thomas Barkin spoke early and indicated benchmark interest rates are not at neutral levels yet. Markets will wait for both Chairman Jerome Powell and FOMC member Charles Evans to speak later.
The EUR is trading flat today with french industrial production numbers missing expectation and Italian Retail sales beating. Although this slowdown in French data echoes the slowdown in German data earlier in the month, analysts do not seem to be worried. European political issues have stopped dominating headlines and this could be adding to the Euro resiliency.
Equities are down this morning: the Dow down 0.17%, the S&P down 0.26%, NASDAQ down 0.0.05% and the TSX down 0.01%. Crude Oil is down 0.78% this morning ($51.95) while Gold is down 0.04% ($1,291.50).
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