Loonie Relatively Flat

The U.S. dollar is broadly higher against most of its G- 10 counterparts to reverse last week’s loss. The week ahead will have plenty of U.S. data to influence the market. Investors will have the Federal Reserve and President–elect Donald Trump’s news conference on Wednesday. Precious metals are trading higher this morning while crude oil has weaken off on concerns over rising U.S. output, which can offset a portion of the production cuts by the Organization of the Petroleum Exporting Countries. The Canadian dollar is relatively flat today as it consolidates within a tight range. Domestic risk today will be the Bank of Canada’s Business Outlook Survey due this morning at 10:30 pm EST.

Traders expect a range today of $1.3330 to $1.3425 Canadian

German fundamentals were mainly on the positive end, as Trade Balance and Current Account in November released better than expected at 22.6 billion and 24.6 billion respectively. German Industrial Production were mixed as month-over-month printed at 0.4%, which was worse than expected, while year-over-year printed at 2.2%, which was better than expected. Euro-zone Unemployment Rate in November held steady at 9.8%. European fundamentals will appear one last time this week on Thursday as Industrial Production and European Central Bank Monetary Policy Meeting Account will release. The euro is currently trading at $1.3961 Canadian.

Experts expect a range today of $1.3895 to $1.4003 Canadian

House prices in the U.K. are on the rise, as Halifax House Price in December printed at 1.7% m/m when expectations was only for 0.3%. Not many fundamental news to be released until Wednesday when Trade Balance in November, Industrial and Manufacturing Production in November print, which will be the main event of the week. The sterling is continuing its drop from last Friday and weakened another cent. The pound is currently trading at $1.6084 Canadian.

Observers expect a range today of $1.6052 to $1.6129 Canadian

The Australian dollar is outperforming today on the back of positive domestic construction data. Building approval figures came in stronger than expected at 7% to beat the forecast of 4.6%. AIG construction Index is up to 4.7 from the previous reading of 46.6.

Oil (WTI): $52.85

Gold: $1,180.96

Silver: $16.54

Copper: $2.510

Dollar Index: 102.24

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