The currency market is shaping up to be relatively calm again today as investors eagerly await the release of Canadian and U.S. job data on Friday. Prices for WTI crude oil had a rough start to the week and could soon drop below the $50/barrel level. Despite the reduced correlation between WTI crude oil prices and the Canadian dollar in recent weeks, a continued correction in energy prices could weigh on the Canadian dollar, which is down 3.5% since topping out on Sept. 8.
Nine Federal Reserve members will speak publicly before the end of the week, with a speech this afternoon from Fed Chair Janet Yellen. It will be interesting to see if they will all be on the same page with a view to preparing investors for a key rate hike in December.
Nothing appears to be standing in the way of rising stock markets, with the three main North American indexes closing at new highs yesterday. Since the start of the year, the S&P 500, Dow Jones and Nasdaq have gained 13.2%, 14.5% and 21.3%, respectively.
Have a great day!
Emmanuel Tessier-Fleury
Range of the day: 1.2410 – 1.2505