During the night, the release of greater-than-expected negative inflation figures in Europe for December (-0.2% vs. -0.1%) drove the euro to lower levels than the loonie with respect to the greenback. The drop of about 25% in energy prices (December) was largely responsible for falling European CPI numbers. Core inflation in Europe - which excludes energy, food, alcohol and tobacco prices -- increased from 0.7% to 0.8%. These readings remain below the 2% target set by the European Central Bank. The willingness of other central banks to progressively reduce their euro reserves is also another factor in the constant depreciation of the euro since March 2014.
Today we will be monitoring many economic indicators from the United States, including ADP Employment Change figures, Mortgage Applications results, Trade Balance and the latest FOMC meeting minutes. As for Canada, we will be looking for Trade Balance numbers (November) to be released at 8:30 a.m. Have a great day.
- Range of the day: 1.1750 - 1.1875
Salim Laaroussi