- October 26, 2018
- Posted by: Joey Benedid
- Category: Market News
Despite yesterday’s equity rallies in North America, overseas markets have turned decidedly negative once again which is bolstering the U.S. dollar across the board as risk sentiment wanes. The FTSE, DAX & CAC are all in negative territory to the tune of 1-2% and the DOW & TSX are slated to open lower as well. Before then we will have U.S. GDP data released at 8:30 AM EST with expectations of +3.3% against last month’s gain of 4.2%.
The Canadian dollar was hit hard yesterday catching the market off guard as large equity based USD buying emerged from U.S. real money sources. The 1.3200 level now looms large as it has capped any USD strength for the last 2 months. Volatility is extreme and with no significant Canadian data releases due out until next Wednesday’s GDP & Friday’s employment numbers, the roller coaster ride is likely to continue.