The Canadian dollar appears to have been affected by Monday’s lunar eclipse, gaining ground despite the 2.4% slide in crude oil (WTI) and disappointing economic indicators. After rising over the past eight months to reach a new peak in May, Wholesale Sales for June dipped 0.5%. Five of the seven sub-sectors of the economy also saw losses.
Stock markets, which are still coming to grips with the Trump government changes, terrorist threats and tensions between North Korea and the United States, have remained relatively steady since Monday morning. Moreover, Ray Dalio, the influential manager of the world’s largest hedge fund, wrote on Monday that internal and external conflicts could affect the efficiency of the U.S. government. Mr. Dalio, who initially supported the Trump administration’s economic policies, is now more cautious and has reduced the market exposure of his Bridgewater fund.
The tone of the Canadian dollar will no doubt be influenced today by the release of Canadian Retail Trade for June. The consensus among analysts polled is an estimated growth of 0.2%. We’ll have to see if Canadian consumers lived up to expectations.
Mark Donohue
Range of the day : 1.2535 – 1.2635