Plunging greenback
During a relatively news-free session yesterday, global stock exchanges racked up another positive showing, led by resources, as WTI crude oil gained 2.8% to close the day at $45.74, its highest level since July 15. The next meeting of OPEC’s 14 member nations is scheduled for September 30 and rumours aiming to stabilize oil prices will be flying more and more in the meantime. The loonie took advantage of rising markets and crude oil by edging up 0.3% Monday against the greenback.
The bearish trend in the U.S. dollar continues this morning against the other major currencies, as the U.S. Dollar Index (DXY) is down close to 1%. The loonie broke through the resistance level of 1.2860 and we see the next major support level at 1.2680.
The most important indicator worth watching today in Canada will be Manufacturing Shipments. If we rely on recent data regarding Canadian manufactured goods exports, we can expect a disappointing reading. South of the border, July Consumer Price Index figures will allow us to better gauge inflationary pressures.
