USD/CAD - Crude Oil Putting Pressure on Loonie

The Canadian dollar continues to consolidate in its weekly range of $0.7550 to $0.7425. Crude Oil has put pressure on the petro currency, with efforts from the Organization of the Petroleum Exporting Countries to cut production having little effect as global demand is not impeding the supply glut. WTI Crude Oil is in bear territory trading under $43.00 U.S. per barrel at $42.88. Investors will be watching for the release of Consumer Price Index figures in Canada, expected around 1.6%.

The U.S. dollar is mixed this morning against its G10 counterparts and will trade on the broader sentiment of the markets globally and domestically. The Federal Reserve will share the results of its Financial Stress Test this afternoon. All 34 of the nation’s largest lenders are expected to pass. Today's Initial Jobless Claims came in as expected at 241,000. Talks are starting to surface that Fed Chair Janet Yellen is likely to be replaced once her term is up in February 2018. Investors don't seem rattled by the news as they see her keeping to her mandate of normalization on interest rates, though inflation seems to accommodate her. Fed guidance is to target and maintain inflation at 2%. The last reading of 1.9% in May was a significant drop from 2.2% in April.

The consensus is a range today of $1.3203 to $1.3310

Finally, the euro will have some domestic data to trade on later this morning when Consumer Confidence is expected to print at -3. French Business Confidence is showing some support to the newly-elected President Macron as it rose to 106 in June, which is the highest in six years. Tomorrow will be the highlight of the week as PMI data will release for France, Germany and the euro-zone while Gross Domestic Product will release for France. The euro is currently trading at $1.4795.

Experts expect a range today of $1.4726 to $1.4834

The Confederation of British Industries Trends in June were better than expected, as Total Orders and Selling Prices rose to 16 and 23 respectively, with factory orders hitting a 30-year high. Bank of England official Kristin Forbes will be speaking this afternoon in London, which will conclude all the event risk for the remainder of the week. The pound sterling is currently trading at $1.67833.

Prognosticators expect a range today of $1.6715 to $1.6812

The Australian dollar continues to retrace today on the back of softer commodity prices, especially iron ore which continues to trade near its recent low. The New Zealand Central bank held interest rates unchanged at 1.75% yesterday as widely expected by the market. The New Zealand dollar was trading higher after the announcement. With no domestic data rescheduled to be released for the rest of the week, the Aussie should continue to take directions from commodities and broader market sentiment.

Oil (WTI): $42.80 U.S. per barrel

Gold: $1,252.57 U.S. per ounce

Silver: $16.57 U.S. per ounce

Copper: $2.5926 U.S. per tonne

Dollar Index: 97.52

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