The Canadian dollar is regaining some of yesterday’s losses on general U.S. dollar weakness. Oil is stabilizing around $45/bbl to help lend the loonie some support. On the data front, traders have Foreign Securities Purchases which came in at $10.6 billion, missing the forecast of $12.14 billion. The market is starting to price in 25-basis-point rate hike by the U.S. Federal Reserve over the next 12 months following the shift in the Bank of Canada’s tone. Scotiabank has changed its forecast and is now looking for the first hike coming in in Q4 2017.
The greenback is trading slightly lower against most of its G10 counter parts today as it returns some of its Fed-driven gains. The market remains skeptical that the Fed will deliver a third rate hike this year due to the recent weak inflation trend. Commodities remains soft while global equities are firmer. On the data front, U.S. Building Permits came in lower than expected at 1.17 million while Housing Starts also missed target coming in at 1.09 million. In this environment, the U.S. dollar will likely consolidate within this weekly trading range.
Experts expect a range today of $1.3205 to $1.3275
The Euro-zone Consumer Price Index hit the mark and released at 1.4% y/y on headline and 0.9% y/y on core, as expected. The Italian Trade Balance fell from last month, but printed better than expected at 3.60 billion. The euro is currently trading at $1.4787.
Traders expect a range today of $1.4732 to $1.4846
It’s a quiet day on the fundamental front for the U.K. as no economic data released this morning. The sterling could not find any more strength after Bank of England gained two more supporters for a rate hike from last month’s meeting. The pound is currently trading at $1.6914.
Commentators expect a range today of $1.6845 to $1.6952
No economic data out of Australia today leaving the Australian dollar to trade on broader sentiments. The currency is outperforming and iron ore is holding steady after making recent lows. In other Asia news, the Bank of Japan has left its policy setting unchanged.
Oil (WTI): $44.78 U.S. per barrel
Gold: $1,255.44 U.S. per ounce
Silver: $16.71 U.S. per ounce
Copper: $2.5699 U.S. per tonne
Dollar Index: 97.32