Morning Commentary & Currency Insights – January 16, 2017

The DXY is holding above trend line support discussed yesterday with euro coming in 80 points off its highwater mark and the remainder of the G7 bloc trading within 50 point ranges in overseas sessions.  No significant data releases are scheduled until later in the week when Chinese GDP, U.S. building permits & UK retail sales are due out.

USD/CAD is trading sideways with all eyes on the BoC rate decision & Monetary Policy Report due out tomorrow at 10 AM EST followed by a press conference at 11:15 AM.  All the major Canadian banks are calling for a rate hike but NAFTA uncertainties & consumer debt levels are compelling reasons for Mr. Poloz to keep rates on hold until at least March.  Either way tomorrow is sure to create fireworks.