CAD - Canadian Dollar
The Canadian dollar held steady within this week's trend channel from 1.3114 and 1.3165. The Loonie gained support this week through raising crude oil and optimism that the United States and China are moving in the right direction to curb their trade war with phase one of the agreement being implemented and additional tariffs sidelined from both sides for the time being. WTI crude is trading above 60 dollars a barrel again this morning ahead of weekly inventories. Crude has seen a lift in pricing as global demand is seen rising through 2020, with trade optimism the main driver. The Loonie should find short term guidance from the release of Consumer Price Index (CPI) numbers this morning. Market Participants are looking for CPI to remain at 1.9 percent on an annualized bases. The Bank of Canada uses CPI data to help in determining if interest rates need to be adjusted. CPI did release at the consensus of 1.9 percent while Core, which excludes volatile readings on energy and auto sales, had a lift to 2.2 percent in November from 2.1 percent seen in October. The Canadian dollar did get a lift from the news as the data is in line with the BOC rhetoric of holding rates steady for the short term.
Brexit remains at the top of the headlines as fear is returning to a possible no-deal Brexit at the end of next year. Prime Minister Boris Johnson will use his new control of parliament to rule out any extension to the Brexit period beyond 2020. Still, European leaders have said a deadline of December 2020 would be too tight to negotiate a deal, and the proposal could lead to a no-deal outcome.
U.S. political noise may play a roll in the greenback's position against its counterparts today as the House lead by Speaker of the House of Representatives Nancy Pelosi are voting on two articles of impeachment against President Donald Trump at 11 am today. Passing these bills will move the process forward to Senate trial in January.
1.3126 - 1.3176 ▼EUR/CAD:
1.4594 - 1.4684 ▼GBP/CAD:
1.7156 - 1.7293 ▼AUD/CAD:
0.8989 - 0.9024 ▼NZD/CAD:
0.8619 - 0.8660 ▼