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The lack of top-tier U.S. data left the Greenback with a mixed performance against its major counterparts as currency-specific factors came into play.

Pre-ECB jitters and Brexit concerns weighed on European currencies while a larger than expected draw in crude oil stockpiles kept the Loonie supported.

  • U.S. building permits up from 1.17M to 1.25M vs. 1.20M forecast
  • U.S. housing starts up from 1.12M to 1.22M vs. 1.16M forecast
  • Canadian manufacturing sales rose by 1.1% vs. projected 0.9% increase
  • U.S. crude oil inventories down by 4.7M barrels vs. expected 3.6M reduction

Major Events/Reports

Return of risk appetite?

Even with all the uncertainty surrounding the Trump administration’s reform agenda, U.S. equities managed to chalk up decent gains for the day thanks to positive earnings data.

  • The Dow 30 index is up 66.02 points to 21,640.75 (+0.31%)
  • The S&P 500 index is up 13.22 points to 2,473.83 (+0.54%)
  • The Nasdaq is up 40.74 points to 6,385.04 (+0.64%)

In particular, the S&P 500 tech index chalked up most of the gains and surged to a new record high. However, a bit of profit-taking occurred towards the end of the session as traders appeared to be lightening up on their exposure ahead of the BOJ and ECB statements.

Larger draw in oil stockpiles

The Energy Information Administration reported a larger than expected draw of 4.7 million barrels in crude oil inventories for the previous week versus the projected reduction of 3.6 million barrels.

Although this was smaller than the earlier draw of 7.6 million barrels, it was better than the API private inventory data which revealed a surprise build. This also marks the third consecutive weekly draw in stockpiles, easing global oversupply concerns and allowing Black Crack to recover from its intraday dip.

  • WTI crude oil rose to $47.12 per barrel (+1.49%)
  • Brent crude oil is up to $49.58 per barrel (+1.21%)

Major Market Mover(s):

CAD

The Loonie stayed supported throughout the day, getting an extra boost from the EIA report and a stronger than expected Canadian manufacturing sales figure.

USD/CAD edged down from 1.2643 to a low of 1.2579, CAD/JPY held its ground at 88.75, EUR/CAD dipped from 1.4570 to a low of 1.4486, and GBP/CAD is down to 1.6416.

Watch Out For:

  • 12:50 am GMT: Japanese trade balance (surplus to narrow from 0.13T JPY to 0.12T JPY)
  • 2:30 am GMT: Australian jobs report (Check out Forex Gump’s trading guide!)
  • Tentative: BOJ monetary policy statement and press conference (and why they might stay on hold)
  • 5:30 am GMT: Japanese all industries activity index (-0.8% expected, +2.1% previous)