Canadian Dollar Off to Strong Start

U.S. President Trump's aboliition and an official withdrawal of the 12 member Trans-Pacific Partnership yesterday had the Canadian Ambassador in Washington quoted as saying Canada will keep a low profile in the weeks ahead to avoid being collateral damage as Trump is focused on Mexico and China right now.

Trump and Prime Minister Justin Trudeau are expected to meet in the next 30 days, and investors are sure that NAFTA will be a topic of their conversation. WTI Oil pared losses from yesterday after the Iraqi Oil Minister's comments questioned if the Organization of the Petroleum Exporting Countries' agreement should be extended further into 2017 crude is up to $53.18 per barrel, up a whole dollar from yesterday's low. The U.S. dollar is flat or has sold off against most of its G10 trading peers as US Treasury Nominee Steven Mnuchin was quoted as saying the U.S. dollar was too high and added this will have a negative effect in the short term.

Investors expect a range today of $1.3180 to $1.3256 Canadian

The theme of Europe this morning is Purchasing Managers' Index data. French Manufacturing, Services, and Composite PMI in January all overperformed along with German and euro-zone Manufacturing PMI. Only German and euro-zone Services and Composite PMI released below expectations. The euro is currently trading at $1.4254 Canadian.

Observers expect a range today of $1.4164 to $1.4274 Canadian

The verdict has been reached, and the U.K. Supreme Court has ruled that parliament will get a vote on Brexit. This doesn’t mean the U.K. will stay within the EU; this just means that it may potentially delay Prime Minister Theresa May’s plan to trigger Article 50 by the end of March. Public Sector Net Borrowing released below expectations of 6.4 billion. The pound is currently trading at $1.6524 Canadian.

We expect a range today of $1.6422 to $1.6539 Canadian

The focus will be on Australia’s Q4 consumer price index data tonight at 7:30 pm EST. The forecast is for inflation to stay flat at 0.7%. Inflation figures will be a key data issue going into the Reserve Bank of Australia’s rate decision on Feb 6.

Oil (WTI): $53.16 U.S. per barrel

Gold: $1,213.78 U.S. per ounce

Silver: $17.16 U.S. per ounce

Copper: $2.6630 per ounce.

Dollar Index: 100.16

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