NY Open: Inflation surge boosts CAD
A surprisingly strong Canadian inflation print has placed USDCAD on its back foot in the early New York session. Could this clear a path towards a September rate hike from the Bank of Canada?
Equities were mixed overnight after a soft Wall Street session that nonetheless remained well within the rebound trend set over the past six trading days. Hong Kong's Hang Seng index, however, was the standout performer after a surge in financial-sector shares pushed the index nearly 2% higher.
On Wall Street, Saxo Bank head of equity strategy Peter Garnry reports that its the Nasdaq index that looks the most robust with tech stocks leading the way on Tuesday. Today's key data points for equity investors are the Euurozone PMI print at 10:45 GMT, its US counterpart at 14:45, and the release of the Federal Open Market Committee's latest minutes at 19:00 GMT.
"Along with the ongoing Treasury auctions, the FOMC will [determine the direction of the USD trade] as investors look for a possible ramping-up of the central bank's interest rate hike schedule," says Garnry.
The European release, meanwhile, could join Tuesday's stronger-than-expected ZEW economic expectations print in lending some momentum to European stocks.