Tuesday Morning Commentary
:: US Dollar vs Canadian Dollar: USD/CAD is trading well within our recent range. Support remains strong from .9885 to .9925 and a break above .9980 targets 1.0055. CAD has performed well against the crosses on the back of higher oil prices but remains vulnerable to a shift in risk sentiment surrounding euro zone issues. Nothing new under the sun here.
Expected range today 0.9925 to 1.0045
:: Canadian Dollar vs Euro: The euro zone reached an agreement on a second Greek bailout that will permit the embattled country to meet its debt payment scheduled for March 20th. In theory this agreement paves the way for a private sector bond holder agreement. The euro & equities initially rallied on this news but initial exuberance has waned as we head into the North American open.
Expected range today 1.3091 to 1.3256
:: Canadian Dollar vs British Pound, Australian Dollar and New Zealand Dollar: Despite slightly better-than-expected UK Public Sector finance numbers, Sterling has opened flat against the Loonie this morning, trading at around the 1.5734 levels. Canadian Retail Sales number came out slightly under expectations, but Wholesale Sales numbers at 0.9% has given the Loonie a slight jump heading into the North American session. Near-term risk lies in Wednesday's BoE minutes that will provide insight on recent QE. The Australian Dollar has tanked against the Loonie in response to RBAs suggestions that the central bank is maintaining its stance on easing. The pair is currently exchanging hands below the 1.0667 levels in the morning session. The New Zealand Dollar is also underperforming against the Loonie as inflation expectations for the dollar have eased in 1Q, dropping the pair to the 0.8328 levels.
:: Data Releases:
AUD: CB Leading Index, MI Leading Index, Wage Price Index
CAD: Core Retail Sales, Retail Sales, Wholesale Sales
EUR: Consumer Confidence
GBP: No data expected today
JPY: No data expected today
NZD: Credit Card Spending
USD: No data expected today
