Support for Commodities Works into Dollar Mix

Commodities remain supported with WTI Crude trading at $49.16 U.S. per barrel with Kuwait entering the production cut agreement with Russia and the Kingdom of Saudi Arabia, while gold remained above support of $1,230.00 U.S. an ounce and currently trades at $1,235.30. The economic calendar for Canada is blank until Friday when investors ponder the Consumer Price Index and Retail Sales numbers leading into the Bank of Canada's Rate Announcement on May 24.

U.S. President Trump seems to like a weaker U.S. dollar, and he may have that at his own risk A Washington Post article printed that Trump shared sensitive information with a top Russian diplomat inside the Oval Office. These rumours only added to the suspicious firing of Federal Bureau of Investigation Director James Comey last week. Fortunately, the greenback does have some economic data to get some footing this morning as Building Permit, and Housing Starts posted at -2.5% and -2.6% respectively. Industrial Production and Capacity Utilization will release later this morning.

Traders expect a range today of $1.3575 to $1.3668

Gross Domestic Product printed for Italy and released at 0.2% q/q and 0.8% y/y, which were in line with expectations. Euro-zone GDP was also inline, printing at 0.5% q/q and 1.7% y/y. Economic Sentiment reports for May released for Germany and the euro-zone, which printed at 20.6 and 35.1 respectively. The trade balance in March also released, and better than expected at 23.1 billion. The euro is currently trading at $1.5070.

Experts expect a range today of $1.5025 to $1.5121

Strong April CPI figures came out in the U.K. this morning, as inflation on core released at 2.4% y/y and on the headline, it released at 2.7% y/y which were both 0.1% better than expected. Other minor fundamentals for April released including Retail Price Index and Producer Price Index which also posted stronger than anticipated. The pound sterling is currently trading at $1.7540.

Observers expect a range today of $1.7521 to $1.7610

The Australian dollar is trading softer today, ending its four-day gaining streak following the release of the Reserve Bank of Australia minutes last night. The central bank continues to highlight concerns over the housing and labor market stating that the "developments in the labour and housing markets warranted careful monitoring."

Oil (WTI): $49.21 U.S. per barrel

Gold: $1,235.08 U.S. per ounce

Silver: $16.72 U.S. per ounce

Copper: $2.5454 U.S. per tonne

Dollar Index: 99.75

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