Last week ended on a positive note for U.S. economic indicators, with Q1 GDP figures, which are usually the weakest of the year, posting growth of 2.3% and exceeding economists’ expectations. According to the US Dollar Index (DXY), the greenback gained close to 1.36% last week against the other major currencies and this trend appears likely to continue.
Turning to NAFTA, we have learned that talks between the United States, Mexico and Canada will take a break until May 7 after the trade meeting in China. This hiatus in discussions leads observers to think that there are still several points to be negotiated.
This week, our attention will be on a number of indicators, including U.S. inflation for March, February Canadian GDP and U.S. job creation. We will also see a key rate decision from the U.S. Federal Reserve (Fed) on Wednesday, although no increase is expected. The Fed raised its bellwether rate last month and we believe that it will move twice more in 2018.
Mark Donohue
Range of the day: 1.2800 – 1.2950