Yesterday’s announcement by China saying it would levy an 25% on approximately $50 billion of US imports, primarily automobiles, aircraft, soybeans and chemicals. Global equities are still in a downward trend even as much of these tariffs were expected. The Canadian dollar remains unchanged, the oil inventory data would normally have given the currency a positive tone, but there is too much nervousness out there, so traders are standing in the weeds.
USDCAD 1.2790, 1.27773, 1.2760 1.2810, 1.2815, 1.2828
- EU manufacturing sector drops more than expected in March.
- UK manufacturing inches higher according to the Purchasing Manager’s Index.
- The Reserve Bank of Australia leaves rates on hold at 1.5%.
- US manufacturing slowed to 59.3.
The factory boom in the EU continues to wane into March. This is now the third month in a row where the index has declined. The PMI manufacturing survey dropped to 56.6 from a previous reading of 58.6.
The Dollar continues to trade in a quiet market, although we have seen it strengthen against the Euro because of the weaker than expected data from the EU.
The Pound continues to prove resilient helped by manufacturing growth inching higher to 55.1 in March and beating consensus of 54.7.
The Euro is under pressure as German retail sales unexpectedly fell by 0.7% in February, along with a weaker manufacturing sector overall.
The Canadian Dollar remains in a very tight range against the US Dollar between 1.28 and 1.30.
The Australian Dollar has been held by due to the concerns about a trade war. The Reserve Bank of Australia left rates on hold at 1.5% and said that a rising Australian Dollar would lead to a slower economic pick-up.
The Chinese Yuan remains exceptionally calm despite the risks of a trade war between the US and China.