Markets continue to trade in a subdued fashion with the USD giving back some of its recent gains as we see the USD index, which shows the strength of the USD against a basket of currencies, fall back to the 101.50 support level despite a valiant attempt by USD bulls to hold on to 102.50. With the EUR, AUD and CHF holding their own, it was only the GBP which failed to find its footing as the UK`s woes continue in light of confusion as to the UK`s Brexit stance and how the UK will begin the divorce form the EU.
Today`s key news releases come courtesy of the US and Canada with the US expected to release the JOLTS Job Openings figure, expected at 5.59M and Canada set to release the Building Permits m/m figure, expected at 2.4%.
The JOLTS Job Openings figure indicates the number of job openings during the previous months, excluding the farming industry and is regarded as a leading indicator of overall employment health in the US. A better than expected release will see the USD sell off subside as bulls jump on the band wagon in hopes of further USD strength. However, a worse than expected print will align with last Fridays NFP figures, which also disappointed markets and thus drag the USD lower.
Canadas Building Permits m/m indicate the change in the total value of new building permits issued in Canada for the month of December and is regarded as a good gauge of future construction activity which has wide consequences for the economy at large. A better than expected release will see the CAD gain strength as it continues to be resilient in the face of weakening crude prices while a worse than expected figure could be the catalyst for the CAD to begin its depreciation in line with crud prices.