Inflation Figures Play into Dollar Trade

The Canadian dollar traded in a wide range overnight and we expect much of the same today. Canadian inflation data out this morning were in line with expectations, while retail sales excluding autos posted 0.1%, well below previous and a miss on expectations. The inauguration of U.S. President Donald Trump is today, and he will give a speech at 12 noon eastern. Market reaction remains imminent. WTI Crude is up 70 cents to $52.96 U.S. a barrel and gold trades at $1,202 U.S., off its low which it touched overnight of $1,198 U.S.

Experts expect a range today of $1.3281 to $1.3388 Canadian for the U.S. dollar.

Only second-tier data released in Europe, as German Producer Prices in December printed in line with expectations of -2.0% m/m and 1.0% y/y. The euro made an impressive gain this week of three cents against the Loonie, and is currently trading at $1.425 Canadian

Observers expect a range today of $1.4168 to $1.4288 Canadian

U.K. Retail Sales in December disappointed and fell below expectations reporting a reading of -2.0% m/m and 4.9% y/y. More news arrived on the "Brexit" of financial services as Lloyds of London insurance confirmed it would be establishing a European HQ outside of the City. The pound is essentially flat from yesterday’s close and trading at $1.6431 Canadian.

We expect a range today of $1.6385 to $1.6502 Canadian

The Australian dollar tested a new nine-week high overnight on the back of upbeat Chinese Gross Domestic Product, which came in slightly stronger than expected at 6.8% while the forecast was for 6.7%. It has retreated from the high as we go into the U.S. presidential inauguration later today.

Oil (WTI): $53.20 U.S. per barrel

Gold: $1,203.58 U.S. per ounce.

Silver: $17.02 U.S. per ounce.

Copper: $2.5955 U.S. per tonne.

Dollar Index: 101.25

Enjoy significant savings and excellent service by transferring funds with CanadianForex.cellent service by transferring funds with CanadianForex.cellent service by transferring funds with CanadianForex.
http://www.canadianforex.ca/partner.asp?id=983