Markets Are Quiet As Europe Remains Closed; CAD Gains on Oil
APRIL 22, 2019
Currency markets were mostly quiet to open the week as much of Europe remains closed for Easter Monday.
The Bloomberg Dollar Index is up a touch by making gains against the Australian and New Zealand dollars.
This morning’s data showed that the Chicago Fed’s national activity index was slightly lower at -0.15, worse than the -0.10 expected. Existing home sales will cross the wire at 10a.m. and are expected to show a slowdown in March. There are no Fed speakers on today’s docket.
What to Watch Today…
- Existing Home Sales at 10 a.m.
Complete Economic Calendar can be found here.
The Canadian dollar has been the best performer to start the week as the price of oil has risen to its highest level since November. The U.S. State Department is expected to end waivers for countries that import oil from Iran later today. Supply worries have pushed the price of crude up in recent months and today’s action will add to those woes.
The Australian and New Zealand dollars came under pressure on news that China is likely to shift away from stimulus in the months ahead. China had increased stimulus last year to stimulate growth and combat the effects of the trade war. Tax relief and cuts to banks’ reserve requirements have been lauded as successful as growth has been better than expected. But a slowdown in stimulus could put renewed pressure on the economy and have a negative impact on Australia and New Zealand that rely on trade with China.