Morning Commentary & Currency Insights – January 3, 2018

Very little action in the overnight sessions as thin, uninspiring holiday markets continue with all G7 currency pairs trading in ranges of 50 points and lower.  FOMC minutes from the FED’s December meeting will be released at 2 PM EST this afternoon which will garner the market’s attention but only briefly unless new revelations are uncovered.

USD/CAD remains listless as well while hovering near the 1.25 or .80 cent level where USD buying has been noted by major banks.  CIBC’s Trading Desk commentary spoke of a few points with which I agree. “Crude prices remain robust however Western Canada Select is still trading at a 25.00 dollar discount to WTI. This remains perplexing to both Albertan’s and Canadians but there is little we can do while trapped in a bad situation where this product can’t be properly distributed. A solution is years away as both the current governments involved, provincially and federally, will offer no answers. This in combination with our belief the BOC has no interest in having a stronger currency should keep rates on hold longer than markets expect.”