Loonie Holds onto Recent Gains

The Canadian dollar has held onto its recent gains against its U.S. neighbour, up over a 1% since the middle of the week. Oil has stabilized over the last two business days providing stability in the pairing. Next week, a slew of Canadian data will provide an opportunity to gain more information on the state of the economy and any potential Bank of Canada rate moves.

The U.S. dollar is softer this week as the Federal Reserve maintained its moderate rate hike plan which has not inspire further greenback buying. Potential risk events in the U.K. and Europe have had little effect on the currency as traders seem happy to adopt a wait-and-see approach. Uncertainty on the fiscal spending, elections in Europe and erratic commodity prices have all contributed to the heightened indecision from markets.

Traders expect a range today of $1.3273 to $1.3353 Canadian

Euro-zone Trade Balance in January printed at 15.7 billion, worse than the expected 22.0 billion. European Central Bank official Ewald Nowotny made a statement hinting that the deposit rate could be raised before the end of Quantitative Easing. The euro is currently trading at $1.4309 Canadian.

Investors expect a range today of $1.4236 to $1.4368 Canadian

There is no economic news out of the U.K. this morning, leaving it to trade on broader sentiments. Even though the bill has become law, Prime Minister Theresa May has not given the official go-ahead to trigger Article 50. The sterling did break out of its range temporarily and achieved a six-week high before retracing some of its gains. The pound is currently trading at $1.6466 Canadian.

Experts expect a range today of $1.6408 to $1.6491 Canadian

The Australian dollar had a quiet overnight session remaining within a tight trading range. Aussie strength has surprised many traders this week as the unusually weak employment data released on Wednesday evening has seemingly had no impact on the Aussie currency. Looking ahead to next week, the Reserve Bank of Australia will release the March Meeting Minutes on Wednesday which could provide some volatility.

Oil (WTI): $48.98 U.S. per barrel

Gold: $1,229.93 U.S. per ounce

Silver: $17.33 U.S. per ounce

Copper: $2.6704 U.S. per tonne

Dollar Index: 100.30

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