The Canadian dollar is slightly softer this morning as it trades near Friday’s multi-month high. On the data front, investors will see retail sales on Thursday and inflation data on Friday. The market has now started to price in a rate hike from the Bank of Canada over the next 12 months. Traders expect the loonie to trade along broader market sentiment and oil prices as they head into a week of limited data release.
The U.S. dollar is relatively flat to start the trading week. Market risk appetite appears to have improved with equity markets up in Asia and Europe. U.S. equity futures also points to a higher open. Commodities are also higher with oil and copper both trading slightly higher today. U.S. data release is limited this week and focus will be mostly on speakers from the Federal Open Market Committee. We’ll see FOMC member William Dudley and Charles Evans speak today. Richard Fisher, Eric Rosengren, Robert Kaplan, James Bullard and Loretta Mester are also scheduled to speak later on this week. The tone of the Fed speakers will be very important as the market remains skeptical of another rate hike for the second half of 2017.
Investors expect a range today of $1.3192 to $1.3253
France had its parliamentary elections over the weekend and it couldn’t have gone better for President Emmanuel Macron, as his party won a majority amid record low turnout of 42.6%. European equity markets has taken this as a positive and is strengthening on the back of this result. No major event risk until Thursday leaving the euro sensitive to broader developments and Brexit negotiations. The euro is currently trading at $1.4793.
Commentators expect a range today of $1.4732 to $1.4836
No major economic data release today, but Rightmove House Prices in June printed over the weekend and fell below expectations of 2.8% and printed at 1.8%. Today is the day formal Brexit negotiations will begin and Bank of England Governor Mark Carney will have his Mansion House speech tomorrow after rescheduling the dinner due to the Grenfell Tower fire. The pound sterling is currently trading at $1.6917.
Traders expect a range today of $1.6835 to $1.6963
The Australian dollar is under pressure after Moody has yet again cut ratings on major banks and this time it’s a dozen Australian banks including the “Big Four”. High Household debit, low wage growth and surging home prices are elevating risk for the major lenders. Next major risk event will be the Reserve Bank of Australia releasing its Monetary Policy Meeting Minutes later this evening. The Aussie is currently trading at $1.0055.
Oil (WTI): $44.84 U.S. per barrel
Gold: $1,248.78 U.S. per ounce
Silver: $16.57 U.S. per ounce
Copper: $2.5836 U.S. per tonne
Dollar Index: 97.31