The U.S. dollar had an excellent day yesterday as the euro was down due to the political uncertainty surrounding failed negotiations to form a coalition government in Germany. Mario Draghi reiterated that a significant degree of monetary stimulus was required to return inflation to the 2% target and these comments also contributed to the weakness of the euro.
In a context of difficult negotiations regarding NAFTA, Justin Trudeau appears determined to take a firm tone with Donald Trump’s government. In fact, the Canadian prime minister will be travelling to China next month to discuss a possible trade agreement between the two countries. Though such an agreement could harm the relationship between Canada and the United States, Trudeau’s risky gamble could force Americans to find common ground regarding the free-trade agreement. Desperate times call for desperate measures.
Earnings season is coming to an end south of the border. Results once again came out above expectations with respective growth of 5.4% and 7.1% for the sales and earnings of the companies making up the S&P500.
Emmanuel Tessier-Fleury
Range of the day: 1.2750 – 1.2865