Boris Schlossberg | Dec 07, 2017 06:35AM ET
Europe and Asia
AUD: Trade Balance 0.1B vs. 1.4B
EUR: EZ GDP 2.6% vs. 2.6%
CAD: Ivey PMI 10:00
Currencies were extremely quiet in Asian and early European trade with most of the majors hugging tight ranges amidst a quiet economic calendar and lack of any headline news.
The only noticeable movement was in the comm dollars which were weaker across the board for a variety of idiosyncratic reasons. The loonie continued to fall in the wake of the BOC's surprisingly dovish rate statement that appeared to suggest that the central bank will remain neutral for a considerable period of time.
As our colleague Kathy Lien noted:
“To everyone’s surprise, the Bank of Canada completely dismissed the recent improvements in data, choosing instead to focus on moderating growth, considerable trade and geopolitical uncertainty and the ongoing slack in the labor market. For all of these reasons they felt the need for continued cautiousness on rate moves.”
USD/CAD rose to a high of 1.2833 in morning London dealing nearly reversing almost all of last Friday’s 200 point decline. For now, 1.2900 remains formidable resistance for the pair, but if US NFP data this Friday surprises to the upside USD/CAD could sweep all the way to 1.3000 as interest rate differentials will begin to weigh on the loonie.
Meanwhile, in Australia, the Aussie also reversed the gains from earlier in the week, with the pair falling below the .7550 level in late Asian trade after Australian trade balance data fell woefully short of expectations coming in at 0.1B versus 1.4B eyed. The sharp falloff in exports indicates that demand from China may be tapering and that does not bode well for the unit long term.
In North America, the US calendar is very quiet and Canada only carries the Ivey PMI report. Barring any fresh geopolitical news markets appear to be content to tread water for the rest of the day as everyone prepares for the marquee release of the NFP report tomorrow.
Written By: Boris Schlossberg
Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Trading or investing in cryptocurrencies carries with it potential risks. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Cryptocurrencies are not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), Forex and cryptocurrencies prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.