Greater demand for risk continued yesterday, driving U.S. stock markets to record levels, once again at the expense of safe-haven assets. The general sentiment caught up to the USD/CAD pair, bringing the loonie down slightly against the greenback.
In parallel, Canadian Finance Minister Bill Morneau appears relatively unconcerned about the strength of the loonie, noting that he perceives the CAD’s trajectory as a clear reflection of our robust economy. It remains to be seen whether the Bank of Canada shares his vision.
Yesterday was a quiet one in terms of economic data, which allowed the market to follow the unveiling of the brand new, highly coveted Apple (NASDAQ:AAPL) iPhone. However, the situation will change today, as we have the opportunity to take the pulse of inflation south of the border. The United States release Producers Price Index data today, with the Consumer Price Index to follow tomorrow. These data will have a direct impact on the U.S. Federal Reserve’s decision on the cost of borrowing for the remainder of the year. Today, we’ll also be keeping an eye on U.S. Crude Oil Inventories at 10:30.
Yusuf Kocagozli