- Trump addresses the UN today at 9:50 am
- Fed Chair Powell delivers remarks this afternoon.
- US dollar opens defensively-CAD underperforms
USDCAD open 1.3830, overnight range 1.3817-1.3845, close, 1.3819, WTI 62.67, Gold 3784.95
The Canadian dollar is trading with a negative bias due to ongoing concerns about economic weakness, rising unemployment and renewed trade issues with the US.
WTI traded higher, rising from 61.85 to 63.02. Support from the risk of more Russian sanctions by Western countries sanctions is offset by rising production and inventories.
President Trump takes center stage at the United Nations today at 9:50 am then comes Fed Chair Jerome Powell speaking in Rhode Island.
Wall Street closed with gains and Australia’s ASX 200 up 0.40% followed suit. Japan’s Topix was shut for a holiday, while the Hang Seng shed 0.70% ahead of a typhoon’s landfall.
As of 7:30 am, the CAC gained 0.73% and the DAX added 0.27%, while the FTSE 100 and S&P 500 futures were flat. The US dollar index sat at 97.36 and the US 10-year Treasury yield was steady at 4.131%.
EURUSD traded in a 1.1726-1.1820 range, climbing on positive eurozone PMI releases before slipping to 1.1801 in early New York. Germany’s manufacturing PMI slipped back into contraction at 48.5, raising doubts about the broader outlook.
GBPUSD consolidated in a 1.3487-1.3528 band after disappointing PMI figures. Flash Composite PMI fell to 51.0 from 53.5, with S&P’s Chris Williamson noting weakening growth, sagging exports, declining business confidence, and accelerating job losses. Sentiment is further clouded by speculation about higher UK taxes.
USDJPY was confined to a 147.51-147.87 range as Japan marked a public holiday. The pair remains underpinned by political uncertainty ahead of the October 4 LDP leadership election, though rising US Treasury yields limited upside traction.
AUDUSD moved between 0.6581 and 0.6608. Losses followed weaker September PMI readings, with manufacturing at 51.6 compared to 53 in August and services at 52 versus 55.8. A rebound in Europe was driven more by broad US dollar softness than local fundamentals.
Canadian releases the housing price index) while the US data is the S&P Global PMI data.
