The Morning Update

The USD and oil pricesare moving lower, equity markets are up, while US yields trends higher. Despitethe move lower, the USD remains near its one week high as the market continuesto move to a safe haven currency. US retails sales figures to be releasedtomorrow. Israel’s bombardments have intensified overnight ahead of a possibleground invasion. Humanitarian aid is being held in Egypt as they await a dealthat would allow for a safe delivery and the evacuation of some foreignpassport holder through the Rafah border crossing.

In other news.  Filling the positionof House Speaker seems far from being resolved as one of senior Republicanhouse member believes there are roughly 40 no votes. Due to the GOP thinmajority in the house, Jim Jordan, the nominee for the position, can’t losemore than 4 votes. Russian foreign minister set to visit North Korea days afterthe US claimed Pyongyang delivered munition and military equipment to Russia.Four Ukrainian children will be reunited with their family after Qatar brokereda deal between Russia and Ukraine.

In currency news. NZ elected a new PMchanging from a liberal government to a conservative one. Polish ruling partyappeared to have lost its majority in what could lead to the opposition partiesto seizing power in what is considered a huge political shift (PLN +0.75%). Aswe start the week, the CNY, THB and MYR are down own +/-0.15%, NAD and AUD up0.5%, while ZAR and MXN are up over 0.6%.

In commoditynews.  Oil pricesremains above $90 as market participants wait to see if the Israel-Hamas warwill draw other countries. Oil futures are flat to start the day, gold is off0.6%, while Natgas is down 3%, Copper up 0.5%, wheat and soybean are up 1.25%and up 0.3% respectively.

CAD – The Looniestarted the week a little stronger as oil price kept most of Friday’s 6% gains.On the economic data front, Bank of Canada’s business outlook to be announcedlater this morning while CPI will be released on Tuesday.

EURCAD – remainsstable to start the week settling near early October levels.

EUR – The Euro startsthe week on a positive note against the USD rebounding off last week’s low.Quiet week on the economic data front in Euroland.

GBPEUR – The crosscontinue is move lower finding support near early October level.

GBP – BoE’s chiefeconomist said that they should not consider the fight against inflation to beover because price growth has slowed and noted that market expectation forfuture inflation shows that the BoE cannot be complacent.

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