Donald Trump is inadvertently giving a boost to his Canadian neighbours.
The US dollar is taking a dip as the President once again criticized his own Central Bank for raising interest rates and hampering the US economy. The dip in the dollar has helped crude prices gain strength, with US oil growing to 65.52 a barrel, which in turn is giving a boost to the TSX. Analysts say the Bay Street index is poised for a better open after yesterday’s subdued start the trade week.
Trump has also put a damper on China’s trade talk visit to Washington tomorrow, stating he didn’t expect much to come from it and calling China spoiled by US trade deals.
Back across the border, traders will be watching as Canada’s big banks start rolling in third quarter earnings reports this week.
But, the TSX might be weighted a bit by a Stats Can report on Whole Sale trade. The report states June sales dropped by 0.5 per cent after eight months of increases. Food and beverage and tobacco sectors saw the biggest drop, followed by vehicle sales.
Despite this, the Loonie is still edging higher to 76.78 cents US, strengthened by the dip in the US dollar.