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Market Reacts to Korean Tensions; US Retail & Inflation Data Disappoint

Published April 17, 2017
  • The Canadian dollar shed gains against the greenback last week after the US military dropped the “Mother of all Bombs” in a fight against ISIS in Afghanistan; global tensions remain high after North Korea’s attempt to launch a test missile failed almost immediately after launch on Sunday
  • Gold and the Japanese Yen are higher as the market maintains its risk-off status on the backs of mounting tension and uncertainty; the US dollar is down this morning as the market reacts to a data after the Easter long weekend
  • Last Friday’s US retails sales and consumer price index numbers disappointed the markets with poor readings across the board; retail sales month on month shrank by -0.2% while consumer price index readings fell by -0.3%
  • While this is the second straight month for a decline in retail sales, economists still fully expect the Federal Reserve to raise interest rates in June; labor conditions as well as consumer confidence remain strong, analysts expect a rebound in both retail sales and inflation in the next few months
  • Oil prices moved down this morning after data showed that US oil production continued to increase; the weekly Baker Hughes rig count revealed the number of active rigs rose by 11 to 683, bringing the count to its highest level in two years
  • The failed North Korean missile launch helped slow the selloff in oil prices; despite this, the improving situation in Libya has helped quell the recent bullish run of oil prices