Loonie falls as the USD strengthens globally

Key Movers

The USD index (DXY) is up today with the US gaining against most majors. On the data front, Today’s ISM Non-Manufacturing survey is expected to come in at a market positive 56. Markets will be watching this data as it shows the confidence largely in service industries which have seen some job losses as of late. Later this morning, we have the weekly oil inventories from Cushing OK. A larger than expected draw down could combine with the announcement this morning that OPEC+ is set to cut production by 2 Million barrels a day to help the WTI number up to $90 a barrel.

The Euro has followed along with the basket of major currencies that have lost ground to the USD this morning. The pair has remained in a range though and it’s likely to take something significant to break it out.

Like most other major currencies, the Pound has surrendered most of the gains that it made in the last 2 days. On the data front, the UK Services PMI was better than expected today, showing the confidence index reaching the benchmark of 50 on the scale.

The Yen continues to underperform the USD after the Bank of Japan interceded into currency markets last week. Data wise this morning though, confidence amongst Japanese purchasing managers came back over the all-important 50 mark. This is largely in response to the expectation that a lower Yen should lend an assist to Japanese exports. One day after Australia’s central bank disappointed with a 25-point hike, the Royal Bank of New Zealand matched expectations with a 50-point hike. This brings their overnight rate up to 3.5%.