The US$ appears unstoppable as it rallies for eight straight days to new highs for the year on a positive outlook for future economic strength. With the Chinese holiday’s over there is optimism over a resumption of trade talks, and the stock market is holding near its yearly highs, despite rumours of another government shutdown over border funding.
The C$ rebounded Friday and is holding quietly this morning near Friday’s close in sympathy with oil. Despite strong jobs data on Friday the Bank of Canada is expected to keep rates steady thanks to weak housing starts. Along with oil look for the C$ to strengthen today in an overall longer-term weakening trend.
The EUR is testing the lows this morning on Brexit fears and disunity in Europe. On Sunday there were large demonstrations in Spain on the Catalan separatist issue, and “yellow-vest” demonstrations in France continued for the 13th straight week. These events coupled with Brexit are not supportive for post-Brexit European investment. Also, over-night the Swiss Franc collapsed 1% to the lows before recovering due to a large sell order executed during poor liquidity.
Key Economic Numbers: Forecast Previous
No key numbers today
- Drummond Gill