US Dollar Declines on Deficit Worries; Global Stocks Rebound After Shrugging Off US Inflation
Published February 15, 2018
The US dollar is broadly weaker against its Canadian counterpart this morning as worries over loose fiscal policy out of the White House continue to weigh on the greenback. USD/CAD fluctuated nearly two cents yesterday between the mid 1.2600’s and the high 1.2400’s.
US Producer Price Index data showed a growth of 0.4%, meeting economists’ expectations. US unemployment claims ticked slightly higher; 230,000 claims were submitted versus expectations of 229,000.
The Empire State Manufacturing Index (a measure of manufacturing sentiment in New York State) missed expectations, however, remained positive with a reading of 13.1. The Philadelphia Index offered a reading of 25.8, surpassing expectations of 21.5.
Global stocks continue to recover this morning after US stocks largely shrugged off increasing US inflation. Asian stocks finished higher ahead of the Lunar holiday, European stocks earned higher levels and US stocks opened higher at New York opening time, 9:30am EST.
Canadian non-farm employment change (as measured by payroll services company ADP) showed that the Canadian economy added 10,700 jobs last month. While this does differ from official Statistics Canada data (which showed a decline of over 80,000 jobs for January), this non-government source of data provides further gauges of the health of the Canadian economy.