Economy Grows 4%

The Canadian economy is again the poster child of growth for the Group of Seven, as none of the other wealthy nations in the developing world even came close. In the first quarter, the Canadian economy grew at 4% and the Bank of Canada projects growth of the economy at 2.6% for this year. Why the caution from the BOC? Yes, the energy sector has improved, yet it will not be a source for gross domestic product growth anytime soon. Exports and business development and investment need to normalize to help offset the expected slowdown in government stimulus, residential investments, and household spending. The Bank stated that the current uptrend in the Greater Toronto Area is expected to correct. The Canadian dollar finds itself trading lower against its trading peers as caution prevails on the side of the BOC's outlook.

Traders expect a range today of $1.3312 to $1.3410

No economic releases today out of Europe, but the euro still benefits from surprise news from British Prime Minister Theresa May. European equities are lower from a weak performance from the banking and financial sector. In election news, polls are suggesting a four-way split for the first round of French presidential elections on Sunday. The euro is currently trading at $1.4292.

Experts expect a range today of $1.4240 to $1.4317

What a morning for the U.K. and the Sterling as May called a surprise snap election on June 8. Since becoming Prime Minister, May was always reluctant to hold an election and was only going to do so in 2020. What May calls "game playing" by Britain’s other political parties is risking the potential of a successful Brexit, and she states that this move will hopefully garner more support and political control through Brexit negotiations. The effects of this snap election have sent the pound sterling flying around 1.5 cents higher, as traders started to close their short positions and optimism could be setting in. Volatility is here to stay, and the risk of Brexit derailing is still always a possibility. The pound is currently trading at $1.70.

Commentators expect a range today of $1.6952 to $1.7045

The Australian dollar is selling off today after the Reserve Bank of Australia minutes released last night. Overall, the minutes were perceived as dovish. The minutes revealed the central bank’s concerns over the weaker than expected labour market and the housing market. Furthermore, the central bank warned of the growing risk in the housing market and warranted careful monitoring over the coming months.

Oil (WTI): $52.40 U.S. per barrel

Gold: $1,285.73 U.S. per ounce

Silver: $18.37 U.S. per ounce

Copper: $2.5438 U.S. per tonne

Dollar Index: 99.88