Monday January 14th, 2019

The market is extremely subdued over the weekend and overnight in anticipation over the UK Brexit vote due later today. There is no economic news of any consequence today in either the US or Canada, however there is a 3-month Treasury bill auction at 11.30am, which will provide some confirmation of the markets’ opinion of the surprising Fed minutes of last week. There is a Producer Price Index number due tomorrow which will provide more inflation guidance.

CAD should weaken today as oil is trending lower overnight and after sharp rallies over the last week have left the market a bit over extended. A pullback of 50-100 bp should not be a surprise. As for the EUR it’s very quiet overnight in anticipation of the Brexit vote.