Calm Monday
As is often the case on Mondays, things were calm on the currency front with the exception of the big news story over the weekend with the coup d’état in Turkey, which now appears to be under control and the freefall in the Turkish lira has levelled off.
Two main points of interest from yesterday:
-Crude oil is showing signs of weakness, dipping briefly below $45. A breakthrough below the next level at $44.50 would accelerate the downslide. It should be noted that our economists see oil falling to $40.
-Foreign appetite for Canadian debt has hit record levels since the start of 2016. In a global environment of negative yields, investors are seeking returns and finding them, meagre as they may be, in Canada. Brexit also shook things up, with a relative flight of capital that benefitted our country. Is the loonie becoming a safe haven?
On the menu today south of the border are Building Permits and Housing Starts.
Later this week, we’ll be keeping an eye on the European Central Bank and Canadian Retail Sales and Inflation.
