Article Highlights

  • Canadian wholesale sales up 0.7% vs. 0.5% consensus
  • RBNZ head Wheeler: Rapid easing could spur unsustainable growth
  • Wheeler: Rapid rate cuts could also inflame property market
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Not even stronger than expected data from Canada was enough to keep the Loonie supported when crude oil prices declined.

Major Events:

Strong data from Canada, weak oil First, the good news. Canada printed a stronger than expected wholesale sales report, showing a 0.7% increase for June versus the projected 0.5% rise. However, Loonie traders seemed to shrug this off since they already got a glimpse of the retail sales report for the same month and the results didn’t turn out so well.

To make things worse for the Loonie, WTI crude oil prices tumbled to $47.05 per barrel (-3.03%) as it was time for the settlement of September contracts to be replaced by October ones.

RBNZ head Wheeler’s speech – RBNZ head honcho Graeme Wheeler doesn’t seem to be in the mood for yet another interest rate cut in their next meeting since he warned that rapid easing could spur unsustainable growth, possibly inflaming the property market as well. Still, he reiterated that the Kiwi’s exchange rate is too high and that this could keep a lid on inflation.

Major Currency Movers:

CAD – The Canadian dollar was the biggest loser for the day, dragged lower by weakening crude oil prices.

USD/CAD climbed from 1.2911 to a high of 1.2965 (+0.42%), CAD/JPY dropped from 77.78 to a low of 77.43 (-0.45%), EUR/CAD popped up from 1.4595 to a high of 1.4673 (+0.53%), GBP/CAD was up from 1.6917 to 1.7019 (+0.60%), and AUD/CAD pulled up from .9829 to .9896 (+0.68%).

Watch Out For:

  • 2:00 am GMT: Japanese flash manufacturing PMI (49.5 expected, 49.3 previous)
  • 4:00 am GMT: BOJ Governor Kuroda’s testimony

See also:

Asian Session Recap

London Session Recap

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