Canadian Dollar Holds Gains
The Canadian dollar managed to hang on to most of last week’s gains in quiet trading, overnight. USDCAD is being weighed down by the latest IMF forecast that lowered US growth estimates while raising Canada’s forecast. The Canadian dollar got another boost form a rebound in oil prices during the European session. There is only minor Canadian data on tap today (Wholesale Sales) and it is unlikely to have an impact on trading.
Oil prices are firmer. That is due to some optimistic comments coming from the Opec meeting. Saudi Arabia’s energy minister said that rising oil demand would more than offset increases from US shale production. He added that Opec and its Non Opec partners are ready to take additional measures if warranted. WTI rallied from $45.42/b to $46.31.
It was a quiet open to the week.
AUDUSD inched higher in Asia and then “popped” in Europe rising from 0.7903 to 0.7966. Traders are biding their time ahead of Wednesday’s inflation report and a speech by RBA Governor Phillip Lowe. NZDUSD traded slightly higher in a narrow range on the back of broad US dollar weakness.
USDJPY opened at the session high of 111.18 and was trading at 110.70 at the New York open. The Markit PMI data was a tad lower than forecast (Actual 52.2 vs. forecast 52.4). A bout of risk aversion due sabre rattling between China and India didn’t help. Nor did the latest IMF World Economic Outlook which lowered the US growth forecast to 2.1% from 2.3%.
Sterling rallied, supported by EURGBP selling and the generally bearish sentiment surrounding the greenback. Traders ignored the latest IMF report which lowered the 2017 UK growth forecast to 1.7% from 2%.
EURUSD traded sideways in Asia and eased, slightly, in Europe, dropping to 1.1631 from a peak of 1.1683. Weaker than expected Eurozone PMI data and the pending FOMC meeting contributed to the selling pressure.
FX Ranges for major currency pairs