USDCAD: open 1.3695, overnight range 1.3693-1.3735, close 1.3701, WTI $82.56, Gold, $2330.35
The Canadian dollar opened close to unchanged after a choppy overnight session due to a mix of US presidential politics and caution ahead of today’s key US inflation numbers.
The Canadian dollar may get a boost when GDP data is released. Statistics Canada estimated that the Canadian economy would grow 0.3% m/m in April, compared to 0% in March. If so, it would suggest that the BoC may take more time before cutting rates. However, a weaker than expected result would raise the odds for a July rate cut which would knock the Loonie lower.
US inflation is in the spotlight. The US Core Personal Consumption Expenditures Price Index is expected to have risen 0.1% m/m in May, a tick below the 0.2% in April, and 2.6% y/y compared to 2.8% y/y in April. The Fed pays close attention to this data, so markets are fixated on it. Lower than expected results will spark a flurry of Fed rate cut bets and raise the odds for a September move. The US dollar will plunge, and bond yields will fall. Of course, the opposite will occur after a higher than expected result.
EURUSD traded in a 1.0684-1.0711 band with traders very cautious ahead of the French election on Sunday.
Don't Waste Money With Banks.
Get Exchange Rates Up to 2% Better With KnightsbridgeFX
GBPUSD traded in a 1.2622-1.2659 range with prices supported by better than expected GDP data. (actual 0.7% q/q vs. forecast 0.6%).
USDJPY rallied then sank in a 160.43-161.28 range. Prices were roiled by a mix of data, US presidential politics, and an internal Japanese Finance Ministry job shuffle. Tokyo inflation rose 2.1% y/y in June compared to 1.9% in May. Japan’s Ministry of Finance replaced its top FX official Masato Kanda with Atsushi Mimura.
Canadian markets are closed Monday.
AUDUSD is at the top of its overnight 0.6619-0.6662 range due to broad US dollar weakness ahead of the US data
We are built to beat bank exchange rates and save you money
KnightsbridgeFx is registered with FINTRAC, under the MSB registration number M09819788. Like most financial institutions, we are required to validate the identity of all clients. We have strict measures in place to protect your privacy.
Our Offices
Main office (Appointment only)
First Canadian Place
100 King Street West
Suite 5700 Toronto, ON,
M5X 1C7
(416) 479-0834
Toll-Free: 1-877-355-5239
Fax: 1-877-355-5239
All rights reserved. Knightsbridge Foreign Exchange
Currency Exchange Canada.
