Daily Afternoon Report 07.02.2018

The U.S. dollar was hovering near four-week high against its Canadian counterpart on Wednesday, despite the release of upbeat Canadian housing sector data, as sentiment on the greenback remained broadly positive.

USDCAD was up 0.30% at 1.2529, just off the previous session’s almost four-week peak of 1.2567.

Statistics Canada reported on Wednesday that building permits rose more than expected by 4.8% in December.

Meanwhile, traders were still digesting the recent plunge in global equities following the release of strong U.S. employment data last Friday, which sparked concerns over rising inflation, sending bond yields sharply higher.

The Dow Jones Industrials index was particularly hit on Tuesday, when it recorded its worst daily point drop in history.

The loonie was little changed against the euro, with EURCAD at 1.5456.