USD/CAD - Loonie Losing Ground from Risk-Off Sentiment

The Canadian dollar continues to lose ground against its American neighbour in the wake of a safe-haven asset move by investors. This morning, investors pondered the New Housing Price Index, which was worse than the previous figure of 0.7% at 0.2% month-on-month. The year-over-year price were 3.9% vs. the prior price of 3.8%.

Global markets continue to take a cautious tone as tensions mount in the Korean Peninsula. South Korea and Japan warned North Korea that a strike at or around the island of Guam would not come without a strong response. Safe-haven assets are still in favour as Gold reached $1,281 U.S. per ounce and the Japanese yen remained high, trading under 110 yen per dollar. Ahead of tomorrow's U.S. inflation figures, there are still U.S. weekly Initial Jobless Claims and Producer Price Index numbers for August. Later this morning New York Fed President William Dudley speaks. Dudley is a voting member of the Federal Open Market Committee.

Investors expect a range today of $1.2630 to $1.2750

There are mixed results out of the U.K. today with a series of economic data releasing. Starting off with the positive news, Industrial Production exceeded expectations and printed at 0.5% m/m and 0.3% y/y. Manufacturing Production released in line at 0.0% m/m and 0.6% y/y. The remaining of the data, Construction Output, Trade Balance and Gross Domestic Product Estimate all fell below expectations. The pound sterling is currently trading at $1.6506.

Experts expect a range today of $1.4929 to $1.5009

Europe had a quiet day on the fundamental front with only minor data releasing. French Industrial Production released worse than expected at -1.1% m/m while Italian Trade Balance released better than expected at 4.50 billion. Next risk event will occur tomorrow when German Consumer Price Index release. The euro is currently trading at 1.4883.

Observers expect a range today of $1.6459 to $1.6552

The Australian dollar continues to trade soft today as markets risk sentiment in the global markets remains soft. The Aussie has been suffering from poor domestic data as well as Chinese data. CPI and consumer confidence from China has both missed targets, putting further pressure on the Aussie. The New Zealand dollar plunged overnight after the Reserve Bank of New Zealand left monetary unchanged but warned of a higher kiwi. The central bank put focus on the need for a lower exchange rate and stated that intervention would be an option.

Oil (WTI): $49.70 U.S. per barrel

Gold: $1,285.55 U.S. per ounce

Silver: $17.18 U.S. per ounce

Copper: $2.9042 U.S. per tonne

Dollar Index: 93.52

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