News Column

Wholesale sales at new high

July 18, 2014

Currency experts observed some softness in the Canadian dollar overnight as "risk aversion" on the tragic news of the downing of a Malaysian passenger jet over Ukraine was the key theme. As the U.S. dollar was unable to break through 1.0770 Canadian, the greenback has settled back to trading within 10 basis points of the 1.0750 level. The Canadian Consumer Price Index provided the top data release this morning and the market anticipated some softness as Bank of Canada Governor Stephen Poloz discounted the previous readings as one-offs. Experts expect a range today of 1.0730 to 1.0800 Canadian The euro is flat, opening at yesterday's close. On the data front, euro-zone current account balance has softened and the market seems to have ignored comments from Bundesbank President Jens Weidmann's hawkish comments. The euro is expected to remain relatively quiet ahead of preliminary Purchasing Managers' Index release for next week. Observers expect a range today of 1.4450 to 1.4550 Canadian Strong Canadian wholesale sales strengthened the loonie across the board. The pound is weak, down 0.56%, essentially retracing all of Tuesday's gain. Next highlight from the U.K. will be next Friday's advance Gross Domestic Product release. The pound is trading at 1.8296 Canadian. The Australian dollar is holding strong and is essentially unchanged from yesterday's close. The Aussie has been trading on a tight range since the beginning of this week and markets will be focusing on Reserve Bank of Australia Governor Glenn Stevens on Monday evening when he speaks. The Aussie is trading at 1.0061 Canadian. The New Zealand dollar is weak and has retraced all of last week's gain this week as the currency broke another two-week low. The kiwi is approaching the 0.9284 Canadian support level and today would be the fifth consecutive day loss. The New Zealand dollar is trading at 0.9299 Canadian heading into the last trading session of the week. Data Releases CAD: Core CPI + Wholesale Sales AUD: No data EUR: No data GBP: No data JPY: No data NZD: No data USD: Prelim UoM Consumer Sentiment

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Source: Baystreet Stocks to Watch (Canada)

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