Daily Market Commentary

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Wednesday January 23rd, 2019

USD: The US Dollar Index is toppy this morning. Over the last two weeks USD has rallied sharply on a more expansive Fed policy and EUR weakness over Brexit. It appears overdone, so look for a pull back over the next few days. CAD: CAD fell sharply yesterday on continued issues with China. The drop [...
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Tuesday January 22nd, 2019

CAD is weaker this morning, falling to 0.75 cents, on worries over US-China trade talks. It should find support near this level today, but expect further weakness going forward. Commodities and equities are down globally as China reports the slowest growth in 30 years at 6.6%. This is a strong numbe...
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Monday January 21st, 2019

CAD is weaker this morning but still stuck in a range. Ongoing potential trade issues with China might be the reason CAD hasn’t rallied further given recent strength in oil. Overall commodity prices are historically undervalued relative to the SP500, but commodities seem to be finding some support...
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Friday January 18th, 2019

CAD dropped sharply yesterday to almost 0.75 cents in the morning then rallied equally strongly in the afternoon. In keeping with a US Fed theme, business leaders are expecting a reassessment in Bank of Canada policy of rate hikes. Oil prices were also weak in the morning and surprisingly strong in ...
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Thursday January 17th, 2019

The UK government survived the no-confidence vote yesterday putting further strength to Sterling. The economic numbers for the US continue to show weakness and so the USD should trend lower from here. CAD is also weaker this morning on lower oil prices and that weaker trend is expected to continue o...
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Wednesday January 16th, 2019

Brexit was voted down in the UK parliament yesterday by a wide margin. The Labour Party has brought a no-confidence vote to the House today calling for a new election, which is expected to be voted down. Interestingly Sterling dropped three cents prior to the vote then rebounded three cents after wh...
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Tuesday January 15th, 2019

Today US Core Producer Price Index, an important indicator of overall inflation, will be announced for December 2018. The Year-over Year rate is expected to be 2.5%. While the PPI has been steadily increasing for 3 years peaking at 3.5% a few months ago, it has been declining steadily since then. Th...
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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 ...
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Friday January 11th, 2019

Jobless claims fell yesterday to 216,000 below consensus and USD dollar rallied strongly from recent weakness. However, thanks to the Feds new policy towards a rethink of last year’s relentless interest rate hikes the trend in the USD will now in general be towards weakness, which the market is ex...
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Thursday January 10th, 2019

The Fed Minutes yesterday at 2pm confirmed to the market that there has been a moderation in the Fed’s tightening policy. The USD dollar sold off sharply and while it may be over done in the short-term it’s important for business owners everywhere to realize that future rate increases th...
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