Canadian Housing Starts Better than Expected

Canadian Housing Starts for September proved higher at 217,100 than the forecast of 212,000, Building Permits missed expectations of -1.0% and headlined at -5.5%. Bank of Canada Senior Deputy Governor Carolyn Wilkins speaks at an International Monetary Fund panel at 2 p.m. today.

There is limited event risk for the U.S. dollar today with Federal Reserve Governor Neel Kashkari speaking at the Regional Economic Conference. Equities are pointing to all-time highs with the NASDAQ, Dow and S&P 500 all reaching elevated levels. The most prominent event risk for the big dollar this week will be Consumer Price Index and Retail Sales figures on Friday.

Experts expect a range today of $1.2443 to $1.2540

Euro-zone data was mixed today with French industrial production data for August missing its target while Italian industrial output surged more than expected. German trade data also came in steady with no surprises. The euro is better supported today by European Central Bank Governor Sabine Lautenschlager’s call for an exit from Quantitative Easing as soon as possible.

Commentators expect a range today of $1.4687 to $1.4769

The pound sterling continues to rebound as it recovers from last week’s drop. Domestic data releases were supportive. U.K. industrial production rose 0.2% in August as expected. Construction output came in better than expected while trade data came in missing the forecast.

Those in the know expect a range today of $1.6339 to $1.6532

The Australian dollar is stabilizing today after the National Bank of Australia said the Reserve Bank of Australia could raise interest rates by the second half of 2018. NAB Chief Economist Alan Oster said the Australian labour market is set to see improvements going into 2018 and will be better equipped to deal with challenges it faces.

Oil (WTI): $50.50 U.S. per barrel

Gold: $1,291.14 U.S. per ounce

Silver: $17.17 U.S. per ounce

Copper: $3.04 U.S. per tonne

Dollar Index: 93.36