USD/CAD - Loonie Continues to Soften

The Canadian dollar is forced to trade on the broader market sentiment with the lack of economic data today to trade off. Crude oil continues to rise, and WTI currently trades 0.45% higher today at $52.58 U.S. per barrel after reports on Monday say Iraqi has amassed thousands of troops on the Kirkuk boarder. The region is home to hundreds of oil wells, and stories out of the zone say oil shipments are down more than 90,000 barrels per day.

Friday’s Retail Sales and Consumer Price Index for Canada remain the most prominent event risk for the loonie, as figures are pre-Bank of Canada interest rate announcement next week. Bank of Canada Senior Deputy Governor Carolyn Wilkins speaks at 3:30 p.m. at the Sibos Conference.

The U.S. dollar remains elevated against its G10 trading peers and the dollar index rose to 93.54 up 0.26%. Tension heats up with the war of words between North Korea and the United States; North Korea's Ambassador to the United Nations said that "the U.S. entire mainland is now within our firing range.” This statement comes just before the U.S., and South Korea are to practice naval exercises in the Korean Peninsula, and the North Koreans see this as a threat. This morning Import and Export price indexes came in better than expectations. Later in the morning, we will have Capacity Utilization along with Industrial Production. U.S. Federal Reserve official Patrick Harker speaks on Equitable Transit at 1 p.m.

Experts expect a range today of $1.2469 to $1.2585

Euro-zone inflation released as expected at 0.4% m/m and 1.5% y/y. German economic sentiment survey rose in October to 17.6, but not up to expectations of 20. Regardless of the weaker-than-expected print, it is still high on an historic level, and Germany’s economy is still strong heading into the end of the year. The euro-zone economic sentiment survey dropped from the previous month and released at 26.7. The euro is currently trading at 1.4740.

Observers expect a range today of $1.4688 to $1.4773

September inflation in the U.K. printed as expected at 3.0% y/y on the headline and 2.7% y/y on the core. The Retail Price Index fell below expectations of 0.3% m/m and 4.0% y/y and printed at 0.1% m/m and 3.9% y/y. Bank of England Governor Mark Carney appeared before the Treasury department this morning and said that inflation hadn't peaked yet after hitting 3%, which is a five-year high. Carney also addressed that a weak sterling is to blame and naturally high inflation will eat into workers’ wages. The pound is currently trading at $1.6522.

Traders expect a range today of $1.6474 to $1.6576

The Australian dollar is under pressure today after the release of the Reserve Bank of Australia’s meeting minutes for October. The central bank reiterated concerns about the adverse effects of a stronger Aussie. The RBA also revealed stated that any policy change will be dependent on domestic economic conditions and not be influenced by tighter monetary policies elsewhere. Domestic risk event now swifts to job data tomorrow night at 8:30 p.m. EDT.

Oil (WTI): $51.90 U.S. per barrel

Gold: $1,285.12 U.S. per ounce

Silver: $17.07 U.S. per ounce

Copper: $3.2147 U.S. per tonne

Dollar Index: 93.20

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