CAD dips following lower-than-expected building permits data

Key Movers

The US dollar remained stable this morning ahead of the inflation data releases set for later this week. Inflation figures this week could determine expectations for earlier Federal Reserve Rate Cuts. Recent labour market data and the Fed ruling out future rate rises resulted in markets pricing in more easing from the Fed this year. US Producer Price Index (PPI) data is expected out on Tuesday and Consumer Price Index (CPI) data as well as retail sales numbers are set to be released on Wednesday. Markets forecasted stick inflation with PPI forecasted to rise 0.3% and CPI expected to gain 0.4%.

The EUR/USD continued its daily uptrend to trade positively above the 1.08 level this morning. Markets priced in rate cuts from the European Central Bank (ECB) to be earlier and at a faster decline than the Fed is expected to. This week the Eurozone will see Q1 preliminary Gross Domestic Product (GDP) data which is set to be released on Wednesday. GDP numbers will help to supply a fresh outlook into the Eurozone’s economic health. The EUR/USD pair will be most driven by the US CPI numbers this week.

In Swiss news, the Switzerland Consumer Confidence Survey which surveyed household confidence on economic conditions came in above expectations at -38.1 versus the expected -40. This slight increase above the anticipated level could indicate increased consumer spending.