North America is back from the Labour Day holiday and kids are back to school. No major fundamentals this morning except the U.S. Institute for Supply Management Non-Manufacturing/Service Composite of August release this morning. Federal Reserve Official John Williams speaks in Nevada this evening. The U.S. dollar is continuing to drop and is currently trading at $1.2914 against the Canadian dollar.
Experts expect a range today of $1.2883 to $1.2943 Canadian
Purchasing Managers Index data was the theme of yesterday as Services and Composite PMI in August released in Europe. France printed strong Services and Composite PMI data, however, Germany's was worse than expected. Italy’s PMI were mixed as Services printed better than expected while Composite was softer than expected. Retail Sales in July also released stronger than expected at 1.1% m/m and 2.9% y/y. Euro-zone gross domestic product printed inline this morning at 1.6% y/y and 0.3% m/m. The euro is currently trading at $1.4418 Canadian.
Traders expect a range today of $1.4393 to $1.4443 Canadian
U.K. Services and Composite PMI in August both printed better than expected at 52.9 and 53.6 respectively. Service PMI data, which is the most important data release today, made the largest gain in the past 20 years after it rose 5.5 points. On the fundamental front with no further major release scheduled. The pound sterling seems to be leveling off at $1.7236 Canadian.
Those in the know expect a range today of $1.7201 to $1.7287
The Australian dollar is the outperformer today, after the Reserve Bank of Australia left its interest rate unchanged at 1.50%. The RBA also did not provide any explicit clues of any further easing in the near term. Australian current account deficit also came in lower than expected which helped to add further support to the Aussie. The New Zealand is also trading higher today on general U.S. dollar weakness. Next major risk event from New Zealand will be NZ GDT price index.
Oil (WTI): $43.97
Gold: $1,334.27
Silver: $19.63
Copper: $2.0918
Dollar Index: 95.60
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