CAD - Canadian Dollar
In the U.S., President Donald Trump continues to effect the crude oil market, causing it to plunge after a report stated that the President had discussed easing sanctions on Iran to secure a meeting with President Hassan Rouhani later this month. The USD/CAD pair increased yesterday to 1.3218 (weaker Loonie) due to the 2.4 percent fall of crude oil after this news. At the time of this writing, the USD/CAD pair is increasing by 0.05 percent to 1.3195, due to the U.S dollar’s strength.
Regarding crude oil, the EIA had said that 2019 oil demand growth will come in at around 900,000 barrels a day, down sharply from the 1.55 million it was anticipating back in January in its Short-Term Energy Outlook released on Tuesday.
The European Central Bank cut its key interest rate and initiated a package of bond purchases that lays the groundwork for what is likely to be a long period of ultra loose monetary policy, surprising European financial markets and triggering an immediate response from President Trump. Following the ECB decision, President Donald Trump tweeted, "European Central Bank, acting quickly, Cuts Rates 10 Basis Points. They are trying, and succeeding, in depreciating the euro against the very strong dollar, hurting U.S. exports... And the Fed sits, and sits, and sits. They get paid to borrow money, while we are paying interest!"
The U.S. dollar rises following the August Consumer Price Index release, which increased 0.1 percent in August on a seasonally adjusted basis after rising 0.3 percent in July, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the all items index increased 1.7 percent before seasonal adjustment. The core CPI month to month (or all items less food and energy) rose 0.3 percent in August, which was higher than the 0.2 percent expected, but the same increase as in June and July.
The Fed was the target of Trump's ire again when President Donald Trump called policymakers "boneheads" and asked for rates to be slashed to zero or lower in a Twitter tirade. He added, "We should then start to refinance our debt. Interest could be brought way down, while at the same time substantially lengthening the term."
According to Bloomberg, China's credit growth rebounded in August, signaling that efforts to channel funds to companies to offset higher U.S. tariffs, may be gaining traction. Aggregate financing was 1.98 trillion yuan ($278 billion) versus about 1.01 trillion yuan in July.
1.3145 - 1.3320 ▼EUR/CAD:
1.4520 - 1.4597 ▲GBP/CAD:
1.6207 - 1.6330 ▲AUD/CAD:
0.9050 - 0.9089 ▲NZD/CAD:
0.8469 - 0.8510 ▲