News of a sharp decline in oil and lower economic growth numbers have sent the C$ lower to near six-week lows this morning. The dispute with China is escalating while the government is distracted with continuing ethics investigations. Overall the C$ is trending lower but look for a short-term buying opportunity today as the C$ finds temporary support.
The US$ and global stock markets are stronger this morning on news that a resolution to the China-US trade dispute will finally be announced at a new summit meeting planned for the end of the month. Look for continued strength today.
The EUR continues to weaken as economic and political turmoil are not resolved. France’s ‘Yellow-Vest’ anti-tax movement had its 16th weekend demonstration despite the government’s attempt to quell dissent and opposition to Prime Ministers May’s Brexit proposals are softening in the UK parliament. The problems in Europe aren’t going away anytime soon, so look for more weakness today in a continuing long-term downtrend.
Key Economic Numbers: Forecast Previous
US Construction Spending (Dec) 0.3% 0.8%
- Drummond Gill