Yesterday, we received confirmation that the U.S. manufacturing sector is recovering, with growth of 2.1% in Factory Orders for March. The USD/CAD pairing has remained relatively stationary since yesterday morning however, with the loonie rising by only 0.37%.
Overnight, the Reserve Bank of Australia (RBA) cut its benchmark rate by 0.25%, bringing it to a record low of 2.0%. The RBA based its decision on low inflation and its determination to support the recent improvements in the country's real estate market. The Australian dollar rose on the news against all major currencies, a sign that markets do not expect further rate cuts.
The euro continued to slide for the third day in a row against the USD and CAD. The European Commission slashed its growth forecast for Greece from 2.5% to 0.5% for 2015 while the GDP for the eurozone as a whole was adjusted upward from 1.3% to 1.5%.
Today, we'll be keeping an eye on U.S. Trade Balance data and listening carefully to the speech by Bank of Canada second-in-command Carolyn Wilkins.
- Range of the day: 1.2050 - 1.2200
Have a great day! Salim Laaroussi