The US CPI was released today and matched the estimated value at
1.4%. Housing starts were released as well with the actual numbers below
estimates at 914K which was still an improvement over last
month’s data. While these numbers do not show a significantly better US economy
there is speculation that the Fed will begin to taper quantitative easing with
the economy viewed as steady enough to begin tapering quantitative easing. We
are waiting for tomorrow when the Fed will release a statement that will put an
end to speculation about their decision.
The Euro has strengthened against both the
Canadian and US Dollar throughout
the morning, Sterling is also a bit stronger as it is making up some of its losses from overnight the Canadian Dollar continues to trade within recent ranges and it sits in the
middle of the 1.1050 to 1.0250 ranges, it has been a very uninspiring morning
for the Loonie. As traders
wait for the Fed and consolidate their positions ahead of the announcement
tomorrow there should not be a lot of movement and we
should mostly see range trading for the rest of the day.
Have a good evening
Yonah
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