Monday February 4th, 2019

The US Dollar rallied as other currencies struggle this morning. Strong jobless numbers on Friday, the second strongest monthly growth in jobs in two years, supported US Dollar strength. That strength has continued into this morning and should continue for the rest of the day.

CAD is quietly weaker after a strong rally all last week. Expect quiet strength today ahead of the Balance of Trade numbers tomorrow morning. Canada’s trade numbers have been steadily declining for over 15 years but have held steady recently. Any strength in these numbers will strengthen CAD further. Trudeau is starting to hit the campaign trial with public town-hall meetings in preparation for an election due later this year. He is receiving some negative feedback for his economic policies. The Liberals hold a slim 11 seat majority in Parliament.

The EUR is slightly weaker, but range bound after last week’s strong rally. Quiet weakness today would not be unexpected.

Key Economic Numbers:                    Forecast   Previous

US Factory Orders November                 0.2%         -2.1%

 

– Drummond Gill –