C$ is hitting high’s not seen in two weeks thanks to strength in base metals prices and the likelihood of a resolution of China-US trade talks. The Administration has extended the tariff deadline and government leaders are meeting next month. Chinese analysts are reporting they expect a deal to be finalized. Equities in China and the US are rallying on this optimism, which will not go unnoticed by either leader. Today there is strong technical resistance at this level, look for weakness today.
The US$ is weaker this morning, but quiet. The market will be waiting for direction from Fed Chairman Powell’s session tomorrow at 10am before the Senate Banking Committee and then Wednesday before the House Committee on Financial Services. These sessions can provide for volatility. Look for a bounce higher this afternoon towards Friday’s close.
The EUR is strong this morning again due to trade optimism, however Prime minister May has once again postponed a vote on her revised Brexit plan to March 12th. With the March 29th deadline approaching and Brussels declaring they will not accept any new deal, it appears PM May is playing hardball with her own party. Look for the EUR to weaken this afternoon.
Key Economic Numbers: Forecast Previous
No important numbers today – –
- Drummond Gill