Investors remain jittery this morning further to tensions escalating between North Korea and the United States. This morning, Japan indicated that it could not tolerate provocations from North Korea, which presented its plan to launch four missiles on the U.S. territory of Guam by mid-August. Today again, the U.S. dollar as well as crude oil and gold prices are benefiting from this situation, while the different stock indexes are once again losing ground.
Patience is essential on the currency market as investors await U.S. Consumer Price Index figures, which will be released tomorrow. An inflation rate above analysts’ expectations would follow last week’s strong employment data, hinting at quicker-than-expected monetary tightening by the U.S. Federal Reserve.
On the economic front, we are keeping an eye on the New Housing Price Index in Canada, as well as Initial Jobless Claims and Producer Price Index figures expected at 8:30 south of the border.
Emmanuel Tessier-Fleury
Range of the day: 1.2660 – 1.2790