(MENAFN- Baystreet) USD / CAD – Canadian Dollar idling Add this under widget
USD/CAD – FX Outlook: Economic Outlook and Summary Add this under widget
USD/CAD – Canadian Dollar struggling Add this under widget
USD/CAD – Canadian Dollar Climbs as risk sentiment improves Add this under widget
USD / CAD – Canadian Dollar survives the Fed Add this under widget Previous Articles Subscribe to Get Small Cap News & Alerts Rahim Madhavji – Wednesday, May 8, 2024 USD / CAD – Canadian Dollar sinks
– Hawkish Fed comments from Neel Kashkari sinks Loonie.
– More Fed-speak today but no data.
– USD dollar opens higher with CAD and JPY the worst performing currencies.
USDCAD: open 1.3747, overnight range 1.3721-1.3761, close 1.3728, WTI $77.44, Gold, $2311.03
The Canadian dollar got walloped yesterday on the heels of hawkish comments by Minneapolis Fed President (but non-FOMC vote) Neel Kashkari and it fell further overnight.
Mr Kashkari published an essay on the Minneapolis Federal Reserve website which outlined his views on the Fed’s current monetary policy and its implications going forward. If you were hoping he expected to be cutting rates, you will be disappointed. Mr Kashkari argues that FOMC has tightened monetary policy more aggressively compared to previous cycles and beyond the market’s understanding of what is considered neutral. Despite this significant tightening, the housing market has shown unusual resilience, suggesting that the current understanding of the neutral rate might be underestimated. His analysis implies that if the neutral rate is indeed higher than previously anticipated, current interest rates might not be as restrictive as they appear, which could lead to sustained higher interest rates than historically observed in the short term.
His essay didn’t do much for equities and led to the US 10-year Treasury yield rising from 4.42% to 4.48% overnight, while sparking widespread demand for US dollars.
The Canada/US 10-year yield spread widened to -85.2 bps due to the believe that although Fed rate cuts could be delayed, the BoC will still cut rates in June.
EURUSD shrugged off the US rates drama and traded in a 1.0734-1.0757 range. EURUSD got a bit of support after Sweden’s Riksbank cut rates to 3.75% sparking EURSEK demand.
GBPUSD traded negatively in a 1.2468-1.2522 band ahead of Thursday’s Bank of England monetary policy meeting. Rates are expected to be left unchanged but the statement could open the door to lower rates in June.
USDJPY rallied from 154.57 to 155.50 due to the higher US 10-year Treasury yield following Mr Kashkari’s comments. Japanese officials continue to warn of further intervention
AUDUSD traded in a 0.6564-0.6600 range, with prices trying to claw back losses after the RBA monetary policy update was on the dovish side. Policymakers hinted that the next rate move was likely to be lower.
There are no US or Canadian economic reports of note today.
About Us
Contact us
Advertise
License Our Content
Jobs
Disclaimer
Privacy Policy
Copyright 1998 – 2024 Baystreet Media Corp. All rights reserved. Nasdaq Stocks: Information delayed 15 minutes. Non-Nasdaq Stocks: Information delayed 20 minutes. Bid and Ask quotation information for NYSE and AMEX securities is only available on a real time basis. Market Data is provided by QuoteMedia. Earnings by Zacks. Analyst Ratings by Zacks
MENAFN08052024000212011056ID1108191371
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
