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The Greenback was off to a weak start as market watchers awaited a fresh round of trade jabs between the U.S. and China. Even so, the Loonie managed to rake in gains on positive NAFTA developments while the Kiwi also scored wins.

  • BOC Business Outlook Survey: Sentiment remains positive on healthy sales prospects
  • BOC Business Outlook Survey: Rising protectionism could impact sales
  • New Zealand NZIER Business Confidence index improved from -12 to -11

Major Events/Reports:

A bit of risk appetite?

The New York session was a tad slower than usual but that didn’t stop U.S. equities and commodities from ending in the green.

  • Dow 30 index is up 46.34 points to 23,979.10 (+0.19%)
  • S&P 500 index is up 8.69 points to 2,613.16 (+0.33%)
  • Nasdaq is up 35.23 points to 6,950.34 (+0.51%)

However, these gains actually shrank from earlier in the session after news of an FBI raid on the office of Cohen, Trump’s long-time lawyer, broke out.

Crude oil drew additional support from the prospect of a U.S. military raid on Syria for a suspected chemical weapon attack over the weekend.

  • Gold is up to $1,335.07 per troy ounce (+0.20%)
  • Copper is up to $6,853.50 a tonne (+1.25%)
  • WTI crude oil is up to $63.28 per barrel (+0.44%)

Of course part of these gains have also been attributed to another round of dollar weakness to start the week.

Optimistic BOC Business Outlook Survey

The mood over in the Canadian central bank was a cheery one as the Business Outlook Survey indicated that firms were more or less optimistic even with NAFTA concerns.

The survey results showed that leading indicators for sales have been mostly positive, spurred by capacity and labor pressures across most regions. Businesses are also looking forward to strong demand from the U.S. but are also wary of rising protectionism and reduced competitiveness.

As for inflation, firms are expecting only modest gains in price levels. Still, business inflation expectations are in line with central bank’s target range of 1-3%.

Major Market Mover(s):

USD

The scrilla found itself on shaky footing once more, weighed by factors including the FBI raid on Trump’s lawyer and resurfacing fears of trade tensions leading up to Chinese President Xi Jinping’s speech in a few hours.

EUR/USD popped up from 1.2267 to a high of 1.2331, USD/JPY edged down to 106.70, USD/CHF retreated from a high of .9582 to a low of .9558, and GBP/USD rose to a high of 1.4165.

NZD & CAD

After taking a beating in the earlier session, the Loonie and Kiwi managed to recover and stay ahead of the pack during the U.S. hours. The former drew support from positive business sentiment and higher crude oil.

Meanwhile, Kiwi strength is being attributed to Aussie weakness, as the latter could suffer the brunt of the blows if trade tensions between the U.S. and China keep escalating.

USD/CAD slid from 1.2806 to a low of 1.2688, NZD/USD surged to a high of .7325, CAD/JPY is up to the 84.00 mark, NZD/JPY rallied to a high of 78.38, EUR/CAD is down to 1.5658.

Watch Out For:

  • 1:30 am GMT: Australia NAB business confidence index (previous reading of 9)
  • 6:00 am GMT: Japanese preliminary machine tool orders
  • Chinese President Xi Jinping’s speech at the Boao Forum