Stock markets had a whale of a start to the year with significant gains yesterday. The situation is completely different for the U.S. dollar, which was down across the board.
The U.S. dollar is simply continuing its bearish trend from 2017. For last year as a whole, the USD lost 14%, 10% and 7%, respectively against the euro, pound sterling and the Canadian dollar. Meanwhile, U.S. stock exchanges had another positive year, with gains of 19% for the S&P500 and 28% for the Nasdaq. The improving economic outlook was felt on bond markets with 5- and 10-year yields in Canada climbing 75 bps and 32 bps. It should also be noted that WTI crude oil rose 13% over the past year.
At 10 a.m. today, ISM Manufacturing data will be released in the United States and the minutes of the most recent FOMC meeting will be made public at 2 p.m. Friday morning should be marked down for volatility on your calendar, with job data posted in both Canada and the United States.
Emmanuel Tessier-Fleury
Range of the day: 1.2470 – 1.2570