The Canadian dollar is lower against all major currencies except the Japanese yen today. CAD is currently the weakest against the British pound and the euro. Following comments from US Treasury Secretary Mnuchin over the weekend (see our US dollar daily update for more details), "risk-on" currencies are strengthening while safe havens such as the US dollar are selling off. In spite of this pattern, the Canadian dollar is weaker today. Looking at crude oil, WTI prices are down as the commodity searches for a direction after last week's big move up.
Note that there are no significant NAFTA headlines today. Last week, both the Canadian dollar and the Mexico peso jumped on news the US was relaxing rules around auto content. Our short-term and medium-term outlook remains bearish.
The USD/CAD exchange rate is currently above 1.290. The euro is up against the Canadian dollar, with EUR/CAD currently above 1.600. The pound is up against the Canadian dollar, with GBP/CAD trading above 1.8310.
This is a relatively light week for Canadian economic data. We'll see GDP figures for January on Thursday. Last week, year-over-year inflation was higher than expectations.