Bank of Canada Governor Stephen Poloz did not displease Canadian exporters. In summary, his message was that the Bank of Canada will be cautious in its approach after two key rate increases this year. He added that there was no predetermined path for interest rates and that they would be reassessed based on the strength of the Canadian economy and our dollar. The rising trend seen in the USD/CAD pair for close to three weeks now continued. For USD buyers who had planned to wait and see if they could get a little more bang for their buck, time appears to be running short.
In the United States, the speech by James Bullard of the St. Louis Federal Reserve failed to have the same impact as the one by Fed Chair Janet Yellen on Tuesday. Although he believes that the Fed’s monetary policy is appropriate at the current level since inflation remains surprisingly low, the U.S. dollar still continued the surge from the previous day to close up against most currencies.
Today should be less eventful, with speeches by two Fed governors at 9:45 and 10 a.m., leading up to Canadian GDP data tomorrow at 8:30 a.m.
Alexis Masson
Range of the day : 1.2400 – 1.2495