NY Open: Loonie lower on weak Canadian retail
A sharper-than-expected downtown in Canadian Retail Sales hit the loonie where it hurts today, sending USDCAD to the 1.3019 area.
The Iran deal-led rally in crude oil prices has spurred energy shares to surpass their January highs with Saxo Bank head of equity strategy Peter Garnry pointing to strong momentum and big inflows as the direct catalyst.
In today's Morning Call, Garnry shared the following breakdown of the energy-sector shares in Saxo's equities model, pointing to strong fundamental scores nearly across the board.
Elsewhere in stocks, Swiss-based luxury conglomerate Richemont disappointed markets in revenue and gross margin terms, reporting operating profits of $1.84 billion versus $2.6bn expected by analysts as well as an excess supply of watches.
In Italy, Garnry says that equity investors could face headline risks over the weekend from Rome's new populist government, stating that short-term investors might not want to hold positions through what could be a turbulent period.
The broad strength seen in equities along with a slight miss in Japanese CPI overnight and high US 10-year yields saw USDJPY reach new highs, but Saxo Bank head of forex strategy John Hardy's focus today is on USDCAD ahead of a March retail sales print and April CPI data out of Ottawa.