USD/CAD - Trade Balance Misses at $3.41B

The Canadian dollar is trading lower against its G10 counterparts heading into the North American session. Trade Balance figures headlined at $-3.41b while forecasts were for $-2.4b. Investors are still waiting for tomorrow's Net Employment Change, and Unemployment Rate to find a course for the loonie. Good employment figures would have investors casting ballots for a more hawkish stance on future interest hikes from the Bank of Canada.

U.S. Trade Balance Figures were flat at $-41.4b while Initial Jobless Claims and Continuing Claims both posted better than forecasts at 260,000 and 1.953 million respectively. The U.S. dollar has gained across the board as fundamentals point to a Federal Reserve rate hike and anticipation of a good print on the Non-Farm Payroll jobs figures tomorrow. Equity futures were flat leaning to a slightly negative open; the market is taking a little bit a breather before tomorrow’s jobs data.

Market watchers expect a range today of $1.2462 to $1.2598

German Construction Purchasing Managers Index in September dropped from the previous month of 54.9 to 53.4. Retail PMI in September for Germany, France, Italy and the euro-zone are all in the expanding territory and mainly above last reading. European Central Bank minutes have released and showed the discussion among members on various options to extending its asset buying. One option being a shorter extension with a small cut in bonding buying and another option being a longer extension with a more significant reduction in bond buying. The ECB will decide at its October 26 meeting. The euro is currently trading at $1.4704.

Experts expect a range today of $1.4632 to $1.4719

No major event risks today except for the Bank of England’s Ian McCafferty and Andrew Haldane speaking in London later this afternoon. The political backdrop has been weighing on the pound sterling and does not seem to have gotten better after Prime Minister Theresa May’s disastrous speech yesterday at the Conservative party conference. There are speculations that May’s term may not be as long as expected, which is also weighing on the sterling, which is currently trading at $1.6474.

Commentators expect a range today of $1.6420 to $1.6532

The Australian dollar is dropping today after Retail Sales surprised to the downside. Australian retail sales for August fell to 0.6%, missing the target for an increase of 0.3%. This is the second consecutive drop in retail sales which is overshadowing the positive Trade Balance data which released better than expected.

Oil (WTI): $50.43 U.S. per barrel

Gold: $1,275.97 U.S. per ounce

Silver: $16.72 U.S. per ounce

Copper: $3.0369 U.S. per tonne

Dollar Index: 93.797

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