USD/CAD - Economic Data Is Light This Week

Economic data this week is very light out of Canada with only the New Housing Price Index out on Thursday morning. The Canadian dollar remains strong against the U.S. dollars as analysts price in more interest rates increases for October and even December. Future increases as stated by the Bank of Canada will be data-dependent and rely on the economy being able to absorb capacity faster than forecasts. Key U.S. data out this morning will include the Federal Reserve’s favourite job indicator out at 10 am and the JOLTs Job Openings expected at 5950.

The appetite for riskier assets gained traction yesterday as no further development out of North Korea and Hurricane Irma's threat. Investors have seen an increase in the dollar index from Thursday of last week from 91.13 to 92.04 cents today. Gold fell to $1,325 as risk comes back online and WTI moves higher to $48.26, a 0.3% gain. Key fundamentals for the U.S. this week are Producer Price Index and Consumer Price Index Wednesday and Thursday respectively. As mentioned yesterday, the Federal Reserve is in its blackout period before its rate decision at 2 p.m. ET next Wednesday.

The euro is trading lower today despite some good data from the euro-zone overnight. Italian unemployment rate fell to 11.2% while French private sector payroll rose 0.4%. This reflects strong growth momentum in the euro-zone in Q2.

There was good news for British Prime Minister Theresa May as MPs voted in favor of the EU Withdrawal Bill progressing through Parliament by 326 votes to 290. The vote was the second reading of the bill and means the proposed repeal of all European Union legislation that has come into effect in the U.K. since the 1972 European Communities Act moved a step closer.

The bill's aim is to revert all EU law applicable in the U.K. back to domestic law to ensure there are no legal loopholes. When the U.K. leaves the EU in March 2019, the critics point out that such an act (should it pass) may grant the government too much power. Analysts expect many proposed amendments to be tabled from all side of the house at the third stage when the bill will be scrutinized in much more detail. The pound is trading mainly stronger today.

The Australian dollar is relatively flat today as Australian-U.S.-dollar pairing settles above the support level at $0.8000 this morning. The pair had rejected a test higher to the $0.8100 level last week and is looking to consolidate its recent gains. The focus will be on domestic employment data on Wednesday at 9:30 pm ET.

Oil (WTI): $48.20 U.S. per barrel

Gold: $1,326.01 U.S. per ounce

Silver: $17.80 U.S. per ounce

Copper: $302.35 U.S. per tonne

Dollar Index: 92.05

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