Last week, clear indications were expected from the U.S. Federal Reserve on when it would officially start reducing its balance sheet. Instead, we got the same song and dance as in June, and we only know that this reduction will start “relatively soon.” In short, nothing sufficiently convincing to reverse the established trend for the USD/CAD pair.
Canadian GDP for May released Friday morning was nothing short of spectacular. Over the past year, economic growth has been 4.6%! The Canadian dollar gained against its major peers on the news.
This week, our attention will be focused on U.S. and Canadian job data on Friday. Wednesday’s announcement of the U.S. Treasury’s quarterly financing plan will also take on a singular importance as the U.S. debt ceiling could paralyze the government as soon as September, and the Fed is preparing to cut its bond purchases. A movement in the term structure of U.S. interest rates would have repercussions on currency prices. Today, no major indicators are expected.
Alexis Masson
Range of the day : 1.2420 – 1.2530