Tuesday, August 28, 2012

August 28, 2012: Overview

The USD is relatively flat this morning on the back of mixed news flows and economic data.  The Canadian dollar is outperforming today, which is strange given the flat equity and commodity markets; nonetheless, the Loonie remains within its recent 1% trading range against the USD, having hit a low of 0.9850.  Huge capital inflows have helped the unit recently, though most of them have been into very liquid investments, meaning they can easily be reversed, providing significant scope for a quick turnaround in the Loonie's valuation. 


But markets are unlikely to engage in large moves until later this week, when Ben Bernanke delivers a key speech on monetary policy.  That kicks off the data-heavy month of September, which has plenty of juicy headline risk in it -- some key dates are highlighted below.  The commodity complex is flat today, with oil in New York hovering around the 96.00 mark and gold steady at 1664.00 an ounce.



 


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