Selling Britain by the pound
FX Trader, Loonieviews.net
Summary: Forex traders are no more impressed by UK PM Theresa May's latest efforts than were the leaders of the European Union, and sterling is on track to take the 'week's worst performer' title away from a languishing loonie.
The Canadian dollar takes the silver medal. It lost 0.52% (as of 13:30 GMT) since last Friday’s close and turned the short-term technical outlook to bullish. January Retail Sales fell 0.3%, a nasty surprise for those expecting a 0.4% increase. Statistics Canada blamed the drop on lower sales of motor vehicles and parts. USDCAD jumped to 1.3425 from 1.3395 on the news but quickly retreated, in part because of slightly better than expected inflation data. February CPI rose 1.5%, year-on-year, and rose 2.1% excluding gasoline prices.
Next week may get off to a slow start and then start building momentum into month-end. The UK governments third attempt to get May’s Brexit plan approved by Parliament next week headlines what otherwise would be a fairly dull week, at least until Friday.
The Reserve Bank of New Zealand monetary policy meeting next Wednesday shouldn’t offer any surprises. It is widely expected to keep interest rates unchanged at 1.75% while following the Federal Open Market Committee’s lead and echoing concerns about global growth and trade. US Q4 GDP data on Wednesday and Chicago PMI and Michigan Consumer Sentiment on Friday are the key American economic reports for the week. It is also year-end in Japan, where USDJPY tends to trade with a negative bias due to Japan repatriating offshore assets.