Loonie Finds Traction

The Canadian dollar found traction Monday on the back of commodities. Trading is light today with many markets still closed for Easter. WTI is trading higher than its open at $53.07 U.S. heading into the Canadian open. Gold is trading $33.00 U.S. higher per ounce. Chinese gross domestic product has strengthened yet, shares in China tumbled. Focus over the weekend remained heavy on geopolitical tensions in the Demilitarized Zone between North and South Korea.

Traders expect a range today of $1.3151 to $1.3314

France, Germany, and Italy are all celebrating Easter Monday, which should keep the euro quiet. No release on the fundamental front, but data will start on Wednesday when euro-zone Trade Balance in February and consumer price index in March release. Euro-zone Consumer Confidence in April is due on Thursday, and a series of Purchasing Managers Index data in Europe will release on Friday. The euro is currently trading at $1.4140.

We expect a range today of $1.4089 to $1.4170

The bank holiday in the U.K. today should keep the pound sterling subdued. The action won’t start until later this week as the Bank of England’s Governor Mark Carney will be speaking in Washington on Thursday and Retail Sales in March will release on Friday. The pound is currently trading at $1.6673.

We expect a range today of $1.6640 to $1.6698

The Australian dollar was better supported today on the back of upbeat data from China. Chinese retail sales, GDP growth, industrial growth and fixed asset investment all released better than forecast. Positive sentiment in commodities, especially in copper also helps to support the Aussie today. Event risk will be the Reserve Bank of Australia Monetary Policy Meeting Minutes out at 9:30 p.m. EDT Monday.

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

Gold: $1286.44 U.S. per ounce

Silver: $18.50 U.S. per ounce

Copper: $2.6027 U.S. per tonne

Dollar Index: 100.24

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