Dollar Soft as Oil Steps Back

Canadian International Securities declined to $15.1 billion from the previous of $39.2 billion. Federal government officials offered a vote of confidence in the Canadian housing market and banking system after the Moody's downgrade of Canada’s big five banks. Lawmakers said the real-estate markets in Vancouver and Toronto are supported by principles that leave risk well-contained in those cities, and cited little concerns to cities such as Montreal, Calgary, and Ottawa. WTI crude oil and gold moved into a consolidated area on pricing.

U.S. Equity futures continue to sell off extending losses from yesterday; this is also a continuation from global indices which also sold off overnight. The uncertainty surrounding President Donald Trump is the cause of concern in the market, as it becomes more evident the new administrations policy agendas are derailing, and the Trump trade is correcting. This morning investors saw weekly jobless claims decreased to 232,000 vs. a previous figure of 236,000. Philly Fed data posted a 38 which is much better than expectations of 18.5 and the last posting of 22.

Experts expect a range today of $1.3597 to $1.3659 for the Canadian dollar

There is no major news announcement out of Europe this morning. European Central Bank member Bostjan Jazbec did tell the Wall Street Journal that Quantitative Easing would remain as is, since "none of us are ready to declare victory" referring to low inflation. The euro is currently trading at $1.5166.

Investors expect a range today of $1.5083 to $1.5171

It is pretty quiet on the data front in the U.K. today except for the release of Retail Sales. Retail Sales in April released better than expected at 2.0% m/m and 4.5% y/y when expectations was for 1.0% m/m and 2.6% y/y. The sales data provided more positive news for the U.K. and helped the sterling to continue to push higher against its peers. The pound is currently trading at $1.7770.

We expect a range today of 1.7795 to 1.7674

The Australian dollar is better supported today on the back of strong jobs data released last night. Unemployment rate for April unexpectedly dropped to 5.7% from 5.9%. The number of people employed increased 37,400 against the forecast of 4,500. However, any upside is capped as weak commodity prices especially in copper, and iron ore continues to weigh on the commodity currencies.

Oil (WTI): $48.54 U.S. per barrel

Gold: $1,257.05 U.S. per ounce

Silver: $16.72 U.S. per ounce

Copper: $2.4994 U.S. per tonne

Dollar Index: 97.71

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