Traders Take in Bank Rate Comments

The Bank of Canada left its benchmark interest rate at 0.5% yesterday and was forced to acknowledge that the Canadian economy is growing at a faster pace than previously predicted in January. An interest rate cut was taken off the table by Governor Stephen Poloz, as BOC growth models show gross domestic product reaching a rate of 2.6% vs the previous model of 2.1% for 2017. The Canadian dollar strengthened against its trading peers and saw a cent gain against the U.S. dollar. Today, Canadian economic calendar showed Manufacturing Shipments increasing to -0.2% from expectations of -0.4%, also increasing were New Housing Price Index data at 0.4% from 0.1% previous.

The greenback lost footing against its G10 counterparts as President Donald Trump in a Wall Street Journal interview said the U.S. dollar "is getting too strong". In the same interview, he dropped a campaign promise in calling China a currency manipulator and citing keeping Janet Yellen at the helm of the Federal Reserve. Geopolitical tensions remain heightened as Secretary of State Rex Tillerson warned of a lower level of trust between Washington and Moscow. Japanese Prime Minister Abe warned that North Korea's Kim Jung Uns regime is capable of firing a missile with sarin nerve gas at Japan.

Traders expect a range today of $1.3157 to $1.3266 for the U.S. dollar.

German consumer price index in March released in line with expectation at 0.2% m/m and 1.5% y/y. The euro is currently trading at $1.4067.

Observers expect a range today of $1.4015 to $1.4106

No economic data out of the U.K. this morning. Last evening, the Royal Institute of Chartered Surveyors released House Price Balance at 22%, which is the lowest level since 2009. The pound sterling is currently trading at $1.4066.

Experts expect a range today of $1.6533 to $1.6638

The Australian dollar is higher across the board this morning as vital data helped boost the Aussie. The Australian Employment Change was printed at 60,900 last night well above economists’ forecasts of 20,000; the huge number ignited Aussie buying against all the majors. With the Long Easter Holiday weekend approaching, the Aussie will be extremely quiet unless investors see a dramatic change in overall market risk sentiment.

Oil (WTI): $53.22 U.S. per barrel

Gold: $1,287.59 U.S. per ounce

Silver: $18.58 U.S. per ounce

Copper: $2.5612 U.S. per tonne

Dollar Index: 100.42

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