A lot of this is contingent on the Bank of Canada statement.
That is obviously a direct driver of inflation.
It's got everybody on their heels. Most people are short the U.S. dollar.
Obviously, a little more tepid than what markets were expecting.
I don't think this is a bearish report because average hourly earnings are ticking up significantly,
Any weakening of the Canadian dollar represents a chance to buy more of the currency.
Although the dollar rallied earlier, we still have some support levels that weren't broken.
The ISM manufacturing number was really stronger than expected. Obviously we've seen a sell-off in the U.S. bond market. As a result of this, people are calling for one or two more Fed moves.
We are seeing a lot of new buying of the Canadian dollar. The central bank continues to tighten and everyone is talking about the election. We expect continued strength in the Canadian dollar.
We are seeing a little retraction. Some people took profits by selling the Canadian dollar and buying euros.