BoC Moves Prove Lone Risk for Loonie

WTI Crude Oil is up 40 cents or 0.82% and yet the Canadian dollar is still sliding against its U.S. counterpart. Demand for the greenback is driving the decoupling of the loonie and oil, as investors look to shore up on commodities which trade in U.S. dollars. With no fundamentals from Canada, the biggest event risk for the loonie is from the Bank of Canada, as Governor Stephen Poloz is holding a press conference at 10:10 am EDT after a speech.

The Dollar Index has traders looking at a possible reversal in the greenback’s current decline this March against its major trading peers, as the decline in value is cited as being too fast. Goods Trade Balance figures for the U.S. dollar posted better than expected at $-64.8B when forecasts were for $-66.6 billion. Federal Reserve Chair Janet Yellen speaks at 12:50 on Workplace Development, while other Fed speakers today are Robert Kaplan, Esther George, and Jerome Powell.

Investors expect a range today of $1.3359 to $1.3431 Canadian

There is no major event risk this morning in Europe, leaving the euro to trade on broader sentiments. Conflicting comments from European Central Bank members had Jens Weidmann stating that Quantitative Easing might last longer than required, while chief economist Peter Praet mentioned that it was premature to discuss stimulus. The euro is currently trading at 1.4533 Canadian.

Observers expect a range today of $1.4498 to $1.4599 Canadian

The trigger of Article 50 is looming, and this event may already be priced into market expectations. For the next two years starting tomorrow, negotiations of its terms will be underway, and the Sterling will be volatile subject to developments. There is no major economic news to release today. The pound is currently trading at $1.6804 Canadian.

Experts expect a range today of $1.6767 to $1.6877 Canadian

The Australian dollar is trading lower as the Aussie remains vulnerable to the downside amid ongoing weakness in copper and iron ore prices. Reserve Bank of Australia Assistant Governor Guy Debelle spoke last night but did not give any insights into the policy outlook of the central bank. With no major fundamental data release today, the Aussie will continue to trade on commodity prices.

Oil (WTI): $48.19 U.S. per barrel

Gold: $1,257.41 U.S. per ounce

Silver: $18.11 U.S. per ounce

Copper: $2.6304 U.S. per tonne

Dollar Index: 99.21

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