USD/CAD - Traders Take in Housing Price Info

The Canadian New Housing Price Index YoY remained flat at 3.8% in August; data shows that interest rate hikes and new rules on foreign purchasers are keeping prices in check. Bank of Canada Senior Deputy Governor Carolyn Wilkins speaks today before the Institute of International Finance panel in Washington D.C. at 3:15 p.m.

The U.S. dollar lost ground yesterday after the minutes from last month’s Federal Reserve meeting was released and a less hawkish tone emerged. Members of the Federal Open Market Committee remain concerned over the elements subduing inflation and questioning if these are just temporary or if these will remain persistent. Investors still are pricing in a third interest rate hike from the Fed this year in December. U.S. data this morning is confident with both Producer Price Index, excluding Food and Energy, MoM and YoY releasing above expectation at 0.4% and 2.2% respectively.

Weekly Initial Jobless Claims dropped to 243,000 from previous of 258,000 and consensus of 250,000; jobs continue to be a significant metric for a Fed rate hike. Fed members Jerome owell and Lyle Brainard both speak this afternoon at 2:30 p.m. Investors will remain nimble today heading into tomorrow’s Retail Sales and Consumer Price Index data from the U.S. and expectations are for 1.7% and 2.3% respectively.

Commentators expect a range today of $1.2432 to $1.2530

German fundamentals and Spanish political developments have given a boost to the euro. German Trade Balance, Current Account and both Exports and Imports in August exceeded expectations. Also, the Catalan regional government has stopped short of a declaring independence in Spain. In European Central Bank news, members will meet this month to discuss whether they will put an end to the 2.5 years of Quantitative Easing or extend until inflation picks up. The euro is currently trading at $1.4799.

Experts expect a range today of $1.4748 to $1.4820

Mixed fundamentals from the U.K. this morning have kept the sterling relatively flat. Construction Output, Industrial, and Manufacturing Production all printed better than expected while Trade Balance in August fell short of expectation. Prime Minister Theresa May is causing some uneasiness to investors, as she refused to answer how she would vote in a new referendum on Brexit yesterday at a radio show. The pound is currently trading at S1.6508.

Traders expect a range today of $1.6361 to $1.6444

The Australian dollar is holding onto its recent gains after Australia consumer sentiment increased to 3.6% from the previous report of 2.5%. However, the negative tone in the commodity space, especially in copper is going to stall the Aussie’s upside. Traders will see MI Inflation Expectations at 8 p.m. EDT, and home Loans data at 8:30 p.m.

Oil (WTI): $50.38 U.S. per barrel

Gold: $1,293.27 U.S. per ounce

Silver: $17.17 U.S. per ounce

Copper: $3.1189 U.S. per tonne

Dollar Index: 93.11

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