This morning the Canadian dollar is unchanged from yesterday’s close. In fact, we have been hovering around this same level for two days now. The stock market continues to recover from the losses of late last week and early this week. Oil prices have also stabilized and recovered some of their losses, though they are down marginally this morning. Monthly inflation data in the US came in stronger than expected this morning but no one expects inflation to be a problem and the data was skewed by unusual conditions in certain sectors. As such, the fx markets did not react to the headline number. Governor Macklem’s speech yesterday did not deliver any news beyond what was already in the Bank’s statement on Wednesday. We expect less volatility in the USD CAD rate than usual today.
