The meeting in Kuwait of the Organization of the Petroleum Exporting Countries over the weekend showed discussions held by members to consider extending oil production cuts through the current June deadline. Equity futures in North America signaled a lower open and the cause for the negative sentiment is the failure of the health-care bill Republicans pull with President Trump's consent. The market views this as an obstacle for the Republicans in the passing of the tax reform bill that the administration promised. This is an important week for Federal Reserve speakers, with no fewer than 14 speeches for the market to reflect on and will give price direction for the U.S. dollar against is G10 counterparts.
Experts expect a range today of $1.3353 to $1.3431 Canadian for the U.S. dollar
German IFO Business Climate, Expectations and Current Assessment released stronger than expected, causing the euro to break fresh highs. Business Climate printed at 112.3, which was the highest levels since July 2011, when forecasts were for 111.1. Being the largest economy in Europe, Germany is picking up steam as its Manufacturing Purchasing Managers Index results last week beat estimates and the market will be keeping an eye on its upcoming release of Consumer Price Index, retail sales, and unemployment claims this week. The euro is currently trading at $1.4545 Canadian.
Observers expect a range today of $1.4513 to $1.4619 Canadian
No major economic fundamental release to start off the week in the U.K., but there is plenty of movement in the pound sterling, which broke out of new ranges and hit a four-month high early this morning. Prime Minister Theresa May will be triggering Article 50 this Wednesday, but she will be speaking with Scottish First Minister Nicola Sturgeon for a strong union. The sterling is currently trading at $1.6829 Canadian.
Traders expect a range today of $1.6770 to $1.6877 Canadian
The Australian dollar opened relatively flat this week with risk for further downside as commodity prices are likely to take a hit on the unwinding of the Trump trade. Copper is down almost 1% which will likely keep the Aussie under pressure. The focus will remain on commodity prices as there are no major data releases today from Australia.