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 appears over-done and CAD is rebounding this morning. Look for some range trading in this area as the long-term fundamentals of stronger commodity prices becomes more entrenched.

World: Sterling is rallying sharply this morning while the EUR remains near yesterday’s lows. It’s clear that everyone wants a Brexit deal, now it’s just a matter of the terms. Just about any deal favors Sterling over EUR.

Key Economic Numbers:                    Forecast   Previous

Canadian Year-to-Year Retail Sales:        +0.2%       +0.6%

US Redbook Index Year-to-Year:            –               +6.7%

The US Redbook Index is a survey of same-store sales changes and is widely watched by the street. This number hit new 15-year high’s recently, but fluctuates a lot, so anything over +5% is positive.