Daily Market Commentary

Friday, 26 May 2017 - Market Commentary

Calvin Kuk

US Dollar vs Canadian Dollar

: The loonie weakened against the greenback yesterday as crude oil price fell after some OPEC members remain exempt from participating in production cuts or will be allowed to continue with current output; I won't mention any names Nigeria, Libya, and Iran respectively. Oil prices this morning are relatively unchanged from yesterdays sell off abating the question was the first reaction in the wrong reaction and prices could move higher today. Today we have the loonie strengthening against the big dollar as commodities in precious metals rise. Gold traded up 11 dollars to 1267.00 per ounce; this is a three week high. No economic fundamentals to report on for Canada this morning.

The USD is almost unchanged this week as markets consolidate the recent USD losses. The US Gross Domestic Product was released this morning printing at 2.2% versus economists’ expectations of 2.3%, the slight miss on the number had little impact on the currency market. At 10am the University of Michigan Confidence will be released which could provide some volatility to the market. The G7 summit in Italy will be held over Friday and Saturday which will most likely not create any new information. JS

We expect a range today of 1.3402 to 1.3496

Canadian Dollar vs Euro and Great British Pound

: Quiet on the data front today in Europe leaving the EUR to trade on broader sentiments. German Retail Sales in April will be releasing over the weekend, but the bulk of the significant data will release during the early part of the week. German CPI will be releasing on Monday followed by Eurozone CPI on Tuesday. The EUR is currently trading at 1.5047. CK

We expect a range today of 1.4969 to 1.5086

No major fundamental releases today, but election polls are back in the spotlight and has soften the Sterling overnight. YouGov released the latest poll showing the Labour party narrowing its gap against the Conservative Party. The Labour party reached 38%, which is just 5 points behind the Conservative party leading at 43%. This could potentially slash the Tory majority to two seats. The GBP is currently trading at 1.7277. CK

We expect a range today of 1.7184 to 1.7302

Canadian Dollar vs Australian Dollar and New Zealand Dollar

: The Aussie continues to trade soft as industrial metals remains under pressure. Copper is down 1.23% while iron ore is also down 1.84%. There’s no major data to end the week so the commodity currency will continue to trade along with commodity prices. FC

Oil (WTI): 493.07

Gold: 1264.83

Silver: 17.26

Copper: 2.5639

Dollar Index: 97.38

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