CAD has fallen overnight due to concerns over the economy and trade. Oil is slightly weaker but is holding well given its recent run up, so CAD should find some support at these levels. Bank of Canada Deputy Governor Tim Lane is speaking later this morning. His comments could provide more direction on rates and current CAD levels.
The US Dollar remains strong this morning but looks a little wary of further strength. The economic numbers remain mixed at best, and Fed Vice-Chair Quarles along with Chairman Powell are both speaking tonight. The market will be listening closely for their views on rates. Any hint confirming a policy shift to lower rates in support the economy will hit USD overnight and boost the stock market further.
The EUR is slightly weaker this morning but should find support here. The European economy also remains weak with a poor outlook.
Key Economic Numbers: Forecast Previous
CAD Housing Starts (Jan) +205,000 +213,400
CAD Building Permits (Dec) -1.0% +2.6%
US Balance of Trade -$54Bill -$55.5Bill
- Drummond Gill