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The lack of top-tier economic data left the Greenback with almost nothing to hold on to as U.S. equities didn’t wake up on the right side of the bed this week.

  • BOC official Wilkins: Central bank needs to act if excess capacity is absorbed
  • Wilkins: Canada’s Q1 growth figures were “pretty impressive”
  • Wilkins: Signs of growth are broadening, expansion seen in 70% of industries

Major Events/Reports

Hawkish vibes from BOC official Wilkins

In what seemed to be a relatively uneventful day in the North American side of the world, BOC Governing Council Member Carolyn Wilkins grabbed the mic and dropped some hawkish beats.

According to Wilkins, Canada’s first quarter growth figures have been “pretty impressive” and that even if only a few sectors absorb excess capacity, the central bank might need to think about whether or not stimulus is still necessary.

She mentioned that more than 70% of industries have been expanding and that the economy has been able to adjust to lower oil prices. Wilkins admitted that they’re still baffled about the low exports figure in Q1 and that the remaining slack is translating to below-target inflation.

U.S. markets weighed down by profit-taking

Wall Street painted the town red by cashing in on profits from last week’s strong rallies. In particular, the tech sector has been the biggest drag on Monday mostly due to a sharp drop in Apple shares.

Other tech companies such as Microsoft, Facebook, Netflix and Alphabet joined Apple in the tech tumble while banking and energy shares held their ground.

  • Nasdaq is down 32.45 points to 6,175.46 (-0.52%)
  • S&P 500 index is down 2.38 points to 2,429.39 (-0.10%)
  • Dow 30 index is down 36.30 points to 21,235.67 (-0.17%)

Major Market Mover(s):

GBP

Sterling chalked up more losses for the day as political uncertainty loomed like a dark cloud over upcoming Brexit negotiations.

GBP/JPY dropped from 140.27 to 138.83 (-1.27%), GBP/CAD is down from 1.7115 to 1.6861 (-1.75%), GBP/NZD fell from 1.7642 to 1.7563 (-0.59%), and GBP/USD is down to the 1.2650 mark (-0.77%)

CAD

The Loonie got a bit of a boost thanks to hawkish remarks from BOC policymaker Wilkins.

USD/CAD is down to 1.3334 (-1.01%), CAD/JPY ticked up to 82.34 (+0.49%), EUR/CAD slipped from 1.5086 to 1.4936 (-0.94%) and AUD/CAD is down to 1.0044 (-0.94%).

Watch Out For:

  • 12:50 am GMT: Japanese BSI manufacturing index (1.5 expected, 1.1 previous)
  • 2:30 am GMT: Australian NAB business confidence index