Daily Market Commentary

Thursday, 21 September 2017 - Market Commentary

Calvin Kuk

US Dollar vs Canadian Dollar

: The Loonie continues to trade softer today after FOMC’s comments yesterday. Focus now turn to the Canadian CPI numbers tomorrow. The market is looking for a 0.2% increase in headline inflation. The FOMC decision yesterday saw the Fed sticking to their message for a December rate hike and then a possible three more hikes in 2018. The market saw this more hawkish than expected, which boosted the USD yesterday after the announcement. However, the USD looks to have lost momentum, as we head into the North American open today and trades mixed against its G10 counter parts. FC

The expect a range today of 1.2310 to 1.2392

Canadian Dollar vs Euro and Great British Pound

: No major event risk this morning out of Europe except when President Draghi will be speaking in Frankfurt later this morning. He will also be speaking tomorrow in Dublin where he will have another opportunity to convey to market participants whether the ECB will likely taper or not. More fundamentals will release tomorrow including French GDP and PMI data from Germany, France and Eurozone. The EUR is currently trading at 1.4716. CK

We expect a range today of 1.4677 to 1.4768

UK Public Sector Net Borrowing in August fell below expectations of 6.4B and printed at 5.1B. This didn’t seem to affect the Pound as the currency is still making ground. The final event risk for the week will occur tomorrow when PM May will speak in Italy regarding their Brexit vision. The GBP is currently trading at 1.6671. CK

We expect a range today of 1.6612 to 1.6723

Canadian Dollar vs Australian Dollar and New Zealand Dollar

: The Aussie is trading lower today following comments from RBA Governor Lowe where he hinted that the central bank is far from considering any monetary tightening at this point. Furthermore, China’s credit rating was downgraded by Standard and Poor, which pushed the AUD lower. Combined with weaker sentiment in the commodity space, especially in iron ore and copper, the AUD will be soft for today. FC

Oil (WTI): 50.30

Gold: 1290.59

Silver: 16.90

Copper: 2.941

Dollar Index: 92.37

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