The U.S. dollar posted a strong rebound yesterday. Lack of economic data from the U.S. saw investors focusing on the broader macro themes. News about Apple Inc’s announcement about repatriating billions of dollars in overseas cash saw the markets react bullishly on the news.
On the economic front, the Eurozone inflation report showed that final inflation figures for December were confirmed at 1.4% on the headline and 0.9% on the core. The Bank of Canada hiked interest rates for the third time yesterday since last year bringing the overnight cash rate to 1.25%. However, the Canadian dollar was seen falling as BoC’s Poloz cited concerns about the NAFTA deal and the impact on the Canadian economy.
Looking ahead, China’s GDP data is on the tap today. Economists forecast a 0.6% increase in the economy on the quarter. In the U.S. trading session, the building permits data will be coming out followed by the U.S. crude oil inventories report.
