Loonie Feasts on Greenback Lows

The Canadian dollar has received major support against its American cousin and remains at 0.735 cents. Manufacturing Shipments, representing lower-tier data in Canada, reported this morning for March and reached 1.0% which was better than the previous of -0.6%. The Canadian dollar continues to find legs on the back of oil and metals.

WTI remains elevated at $48.86 per barrel but has cooled off from this week’s news where the Organization of the Petroleum Exporting Countries and Russia are expected to extend production cuts into the first quarter of 2018. Gold is jumping more than $14.00 from yesterday's open and currently trades at $1,245.76. Resistance is another $14.00 higher at $1,260.00. The dollar index fell into its fourth day of decline to 97.90, down 0.30% today.

The greenback is bearing the brunt of the uncertainty within the walls of the White House. Another accusation in a written memo from the former FBI head James Comey that President Trump asked him to drop an investigation on former National Security Advisor Michael Flynn. Crude oil inventories are expected at -2.47 million, which is better than last week's -5.52 million. The New York Fed will release its Household Debt and Credit Report today, as last month’s report was just shy of the all-time high reported back in 2008 prior to the Credit Crisis.

Experts expect a range today of $1.3575 to $1.3672

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. Trade Balance in March also released and will better than expected at 23.1 billion. The euro is currently trading at $1.5070.

Market watchers expect a range today of $1.5083 to $1.5167

Euro-zone Consumer Price Index in April was in line with expectations printing at 1.9% y/y on the headline and 1.2% y/y on the core. Construction Output in March dropped from the previous month of 5.5% and printed at -1.1% m/m and 3.6% y/y. The euro is strong across the board and is currently hitting its resistance level. The euro is currently trading at 1.5154.

Observers expect a range today of $1.7577 to $1.7695

The Australian dollar is trading lower today, bringing a stop to its recent four-day rally. Weak copper and iron ore prices combined with the cautious Reserve Bank of Australia minutes released earlier this week continue to be the key factors weighing on the commodity currency. Iron ore prices have dropped from $80/t at the end of March to around $60/t this month. Main event risk will be Australian employment data tonight at 9:30 EDT.

Oil (WTI): $49.10 U.S. per barrel

Gold: $1,253.05 U.S. per ounce

Silver: $16.95 U.S. per ounce

Copper: $2.5379 U.S. per tonne

Dollar Index: 98.32

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