– Eurozone and UK data fails to inspire traders.
– US ISM Manufacturing PMI ahead.
– US dollar opens little changed-CHF underperforms.
USDCAD: open 1.3575-79, overnight range 1.3561-1.3592, close 1.3579, WTI $79.44, Gold, $2054.96
The Canadian dollar is marooned in a well-defined USDCAD trading band of 1.3360-1.3660. The loonie backed away from the brink yesterday after the US Core Personal Consumption Expenditure index rose 2.8%, exactly as expected. The results were a relief to those fearing a higher-than-expected result, and the Canadian dollar inched higher as bearish trades were unwound.
The Canadian economy was a tad stronger than expected with Q4 GDP rising 1.0% (forecast 0.8%). The economy may be growing, but the gains are pathetic when compared to the robust 3.2% Q4 GDP growth in America. The results did nothing to change the view that the Bank of Canada will leave interest rates unchanged at its March 6 meeting.
West Texas Intermediate (WTI) climbed from $78.06 in Asia to $79.78 in NY today, which is providing the Canadian dollar with a bit of support. The oil price gains are due to concerns that physical supplies are tightening because oil tankers are avoiding transiting the Red Sea.
EURUSD traded quietly in a 1.0798-1.0823 band. Traders ignored February preliminary HICP, which was 2.6% y/y, worse than forecast (2.5%) but below January’s 2.8% result. The German data saw similar results, but none of them will alter the ECB’s plans to leave interest rates unchanged on March 7.
GBPUSD is choppy in a 1.2617-1.2647 range. Initial weakness following soft February PMI data (actual 47.5, previous 46.1) has been unwound, while the better-than-expected Nationwide Housing Price index (actual 1.2%) provides some support.
USDJPY rallied from 149.98 to 150.70 after dovish comments from BoJ Governor Kazuo Ueda contradicted Board member Hajime Takata’s remarks yesterday. AUDUSD is indecisive in a 0.6490-0.6514 range as prices track US dollar sentiment. Today’s US ISM Manufacturing PMI is expected at 49.5.
AUDUSD is indecisive in 0.6490-0.6514 range as prices track US dollar sentiment.
Today’s US ISM Manufacturing PMI is expected at 49.5.