The US$ remains weak after yesterday’s drop on the news of a record job openings report; look for some strength today as US$ builds support for a retest of recent highs over the next few days. There is positive news as inflation numbers due this morning are at 1.6% well below the Fed’s 2% target and there is hope for China trade negotiations as the Administration has proposed an extension to the March 1st deadline.
C$ rallied overnight on oil strength and China trade hopes. The Trudeau government has suffered another Cabinet resignation over the Government’s handling of ethics issues bringing into question it’s ability to survive the coming election in October. Expect a bit of weakness this morning.
The EUR has fallen back from yesterday’s rally off the lows. Look for a bit more weakness today. The Brexit deadline is March 29th and there are no new resolutions.
Key Economic Numbers: Forecast Previous
Inflation Rate Year-to-Year (Jan) 1.9% 1.9%
- Drummond Gill