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Greenback Continues to Strengthen while Canadian GDP Data Disappoints

Published September 29, 2017
  • USD continues to consolidate and is tracking to its best weekly gain this year. USD was helped by Trump’s tax plan which was announced Wednesday, though after some initial euphoria, markets started to consider the practical implications and difficulties of actually getting the proposed framework enacted
  • U.S. data released this morning included Personal Spending (on target at 0.1%) and Core Personal Consumption Expenditures, or PCE, which missed at 0.1% vs. expected 0.2%, though this did not impede the ongoing USD rally
  • Bank of Canada Governor Poloz took a cautious stance earlier this week, stating that BOC monetary policy will remain data dependent going forward, and though this does not rule out future rate hikes entirely, the bar has now been set higher
  • With that in mind, Canadian GDP data released this morning missed expectations, coming in at 0.0% vs. expectations of 0.1%
  • Eurozone inflation data released earlier today also missed expectations (see “Market Announcements” table below), though the Euro seems to have shrugged off the disappointing data
  • Oil prices are mixed this morning, feeling the combined effects of concern over U.S. shale production impeding efforts to rebalance the global crude oil supply and demand function, and Iraqi Kurdistan voting in favor of independence and the resulting Turkish threat to close the region’s oil pipeline. WTI crude is down 0.14% to $51.49 (9:36AM EST) and Brent is up 0.09% to $57.46 (9:36AM EST)