Loonie Under Pressure

Oil has corrected overnight after Saudi Arabia announced the Gulf region would support an effort to continue production cuts through the June deadline. WTI Crude found a bottom of $50.78 U.S. a barrel before the announcement and is now trading at $51.36.

The Canadian dollar continues to be under pressure and has found little ground to make substantial gains on its pairings; the market seems to have one broad stroke of the dampened slow growth paintbrush, which is pushing the loonie aside for now. Investors will have inflation figures out for Canada tomorrow with consumer price index data releasing at 8:30 am.

The U.S. dollar has slipped against most of its trading partners with a move back into U.S. equities as futures signaled a positive open. Philly Fed manufacturing was a miss at 22.0 with expectations for 25.6 and previous was 32.8. Observers also saw an increase in unemployment claims, which printed at 244,000. Vice Chair of the Federal Reserve Stanley Fischer was quoted as saying that global economies are more equipped to handle rate hikes.

Investors expect a range today of $1.3451 to $1.3525 for the Canada-U.S.-dollar pairing

Here comes another round of significant political risk, but this time it’s called Frexit. The first round of the French election is looming on Sunday, and this could set the stage for the beginning of a volatile period for the euro and the financial markets. If no candidate wins more than 50% of the vote, then there will be a runoff between the top two candidates on May 7. With a total of 11 candidates, there is a high chance French voters will have a second round. The euro is outperforming and currently trading at $1.4500.

Experts expect a range today of $1.4468 to $1.4559

No U.K. fundamentals today; however, the Bank of England Governor Mark Carney will be speaking in Washington later this morning. According to a YouGov poll, Prime Minister Theresa May’s Conservatives have 48% support compared to 24% for Jeremy Corbyn's Labour Party. The sterling is inching a little higher post snap election call and currently trading at $1.7271.

Observers expect a range today of $1.7212 to $1.7317

The Australian dollar is stabilizing today as the commodity currency finds support on the back of improved risk appetite in the market. Commodity prices are also broadly higher to lend the Aussie further support. Moreover, domestic data was also supportive with NAB Australian business confidence releasing in positive territory.

Oil (WTI): $50.89 U.S. per barrel

Gold: $1,279.25 U.S. per ounce

Silver: $18.05 U.S. per ounce

Copper: $2.5358 U.S. per tonne

Dollar Index: 99.56

Enjoy significant savings and excellent service when transferring funds with CanadianForex.ca