AM 1150 Kelowna - Radio Rallies & Reversals

US indexes are slightly positive, thanks to a better weekly initial jobless claims number in the US; Only 451,000 initial jobless claims last week versus and estimated 470,000. I'm really not sure where the good news between the lines here is. In Canada, housing starts came in a little lite versus expectations, but the big eyebrow raiser was the record Canadian trade deficit for the month of July, as exports to the US, (still Canada's largest trading partner) dropped for the second straight month. For tomorrow, the markets will be looking to Canada's jobs number.

Now earlier this week, the Bank of Canada raised its overnight policy rate to 1% with a bias perhaps of another hike at the next meeting. Since then, the CDN$ is up and barking at 97 cents. For snowbirds preparing to head south for the winter and looking to stock up on US$'s, the charts suggest there is a little more room to run.

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