USD/CAD - Traders On Eve of Inflation Data

Tomorrow’s Retail Sales and Consumer Price Index for Canada remain the biggest event risks for the Canadian dollar, as figures are pre-Bank of Canada interest rate announcement next week. With no economic fundamentals to trade off, the Lonnie will be subject to the broader market sentiment. WTI Crude falls below $52.00 U.S. per barrel for the first time this week and currently sits at $51.19 after news that Iraq took hold of the Kirkuk region without much resistance.

The United States Senate started the tax debate yesterday and Finance Chair Orrin Hatch is still hoping for a bi-partisan resolution to pass the bill that is seen as a tax relief to middle income earners, which both Democrats and Republicans want. Today Federal Reserve Chair Janet Yellen heads to the White House to interview for a job she already holds. Chair Yellen in the next few months may find herself as part of the Initial Jobless Claims statistic, which was expected to decline to 240,000 from the 244,000 previous, but dropped further than expected to 222,000. The Philadelphia Fed Manufacturing Index also jumped better than forecast of 22 to 27.9 and higher than the previous 23.8. There are Fed speakers today speaking including Federal Open Market Committee Member Esther George in Oklahoma at 1:30 this afternoon.

Investors expect a range today of $1.2445 to $1.2536

No economic fundamentals were due from Europe today, leaving the euro to trade on broader sentiments. The Catalan situation is hanging over the market and has created a cautious Spanish market with debt and stocks weaker on the day. The euro is currently trading at $1.4762.

Experts expect a range today of $1.4730 to $1.4815

U.K. Retail Sales in September experienced a dip from the previous month and printed at -0.7% m/m and 1.6% y/y when expectation was for -0.2% m/m and 2.2% y/y. This has not altered expectations of a more than likely rate hike in November. The pound sterling is currently trading at $1.6436.

Commentators expect a range today of $1.64 to $1.6494

The Australian dollar is trading higher today after Australian jobs data surprised to the upside. The Australian economy added 19,800 jobs, beating the forecast of 14,100. The unemployment rate dropped to 5.5% from 5.6%. The positive data was enough to offset the decline in iron ore prices to give the Aussie a boost today.

Oil (WTI): $51.25 U.S. per barrel

Gold: $1,285.82 U.S. per ounce

Silver: $17.01 U.S. per ounce

Copper: $3.1529 U.S. per tonne

Dollar Index: 93.22