Article Lifts Loonie

The Canadian dollar sees short-term support at $1.30 ahead of the Bank of Canada's interest rate, and Monetary Policy Report released tomorrow at 10 a.m. The U.S. dollar started to retrace after an article written by the Wall Street Journal stated that President-elect Donald Trump as saying the dollar was already too strong. Gold has strengthened with the weaker U.S. dollar adding to the pressure; WTI oil is also climbing. The Saudi energy minister has been quoted as saying many countries that are involved with the production cuts have been going the distance to help curb stockpiles. Uncertainty in the price of crude remains as the Organization of the Petroleum Exporting Countries' agreement comes to an end in June and many economists feel the current cuts will not be enough to curb the glut.

Experts expect a range today of $1.3011 to $1.3086 Canadian

Not much activity with the euro this morning as only German ZEW survey reported mixed data. The report had little effect on the euro which is currently trading within yesterday’s range. German and euro-zone consumer price index data are due tomorrow. The euro is currently trading at $1.3952 Canadian.

Observers expect a range today of $1.3905 to $1.3998 Canadian

Strong fundamental news out of the U.K. this morning sent the pound sterling flying back into early January’s ranges. CPI in December surged to 1.6% y/y on core and headline when forecasts were for 1.4% y/y. Retail Price Index in December also exceeded expectations of 2.3% y/y and 0.4% m/m, which printed at 2.5% y/y and 0.6% m/m. Prime Minister Theresa May is speaking and has reconfirmed her country's stance on withdrawing from the European single market. In return, she also promised to push for the "greatest possible" access to the single market. Her top two priorities are controlling European Union immigration and withdrawing from the jurisdiction of the European court of justice. Further statements may cause volatility. The pound sterling is currently trading at $1.6103 Canadian.

Traders expect a range today of $1.6216 to $1.6093 Canadian

The Australian dollar is trading higher today following comments from U.S. President-elect Trump. The Aussie broke above the key psychological level at 0.7500 against the U.S. dollar. Copper hit some resistance today and dropped 1.77% this morning, which could weigh on the commodity currency. Domestic risk may come from employment figures, due tomorrow night at 7:30 pm EST.

Oil (WTI): $53.25 U.S.

Gold: $1,216.39 U.S.

Silver: $17.12 U.S.

Copper: $2.6220 U.S.

Dollar Index: 100.5


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