Not much movement in trading today. Nevertheless, the JPY is the strongest today and the CAD is the weakest as traders await the US and Canada GDP at 8:30 AM.
The JPY rise came despite, Japanese core inflation being a lower than estimated at 2.5% vs 2.6%. With the tax increase taken out, it’s a +0.5% reading, which would be lowest since June of 2013. The good news, however, is that lower oil prices should help the economy. The BNP Tokyo economist, commented to this point saying oil drop a positive for Japan and he doesn’t see further BOJ stimulus.
The weakest currency today is the CAD as it continues too see weakness post the Bank of Canada surprise cut last week. The USD and the EUR are little changed vs. most of the major currencies. The EU CPI estimate came in lower than estimates at -0.6% for the headline and +0.6% core. Both were 0.1% less than expectations. Unemployment improved to 11.4% from 11.5% in the EU.
The JPY is strongest. The CAD is weakest as NY traders enter for the day
