Oil Breaks New Low, Dollar Plunges

There is no economic news out of Canada this morning, leaving her dollar to trade near new 2017 lows. Broader developments will be the main driver as oil made new lows and is now trading under $48.00 U.S. per barrel. Next event risk is Canadian Existing Home Sales due tomorrow morning.

The U.S. dollar is higher against most of its G10 counter parts today. Global equities are mostly soft while commodities are mixed with firmer prices for crude oil and metals mostly softer. The greenback maintains a bullish tone. However a lot of good news is already priced into the U.S. dollar at the current levels. The market will need a positive tone from the Federal Reserve on both the economic outlook and future rate hikes in order to further lift U.S. dollar sentiment. The Loonie is currently trading at $1.3483.

Experts expect a range today of $1.3436 to $1.3519

German Consumer Price Index printed in line with expectations while German ZEW Survey is suggesting a disappointing economic sentiment. Euro-zone Industrial Production in January also printed worse than expected at 0.9% m/m and 0.6% y/y. The euro is currently trading at $1.4335 Canadian.

Observers expect a range today of $1.4295 to $1.4361 Canadian

Today is an all-around negative day for the sterling. Brexit is underway, as Prime Minister Theresa May was given the go-ahead by Parliament to trigger Brexit and start negotiations with the European Union. Charlotte Hogg stepped down from the Bank of England due to her integrity being in question and Scotland’s future seems to be dangling between the U.K. and the European Union. The sterling has hit a monthly low, but has retraced and currently trading at $1.6375 Canadian.

Traders expect a range today of $1.6347 to $1.6429 Canadian

The Australian dollar snapped its two-day recovery move and traded back lower today after NAB Business Confidence Index for February dropped to seven from the previous month’s reading of 10. Mixed data from China also failed to give the Aussie any boost. Chinese retail sales figures increased 9.5% in January, missing the forecast of 10.5% while industrial production and fixed asset investments both came in better than expected at 6.3% and 8.9%, respectively.

Oil (WTI): $47.64 U.S. per barrel

Gold: $1,202.07 U.S. per ounce

Silver: $16.93 U.S. per ounce

Copper: $2.6125 U.S. per tonne

Dollar Index: 101.63

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