The Canadian dollar (CAD) sailed the metal rates and the trim of Boc rates with relative ease yesterday, says Shaun Osborne, head of Strategy of FX of Scotiabank.
The USD seems highly overvalued
“The bank could not – it could not – to produce much clarity about the policy perspectives, given the uncertainties for the growth and inflation that this commercial war will generate. MACKLEM emphasized that the bank did not want to see increases in first round price (due to the rates) having a domino effect in other prices. The markets cut some basic points of relaxation expectations during the rest of the year, but still discounted approximately 45 Basic points of additional cuts until December at the close of last night. ”
“In general, the CAD seems relatively resistant. The recent reduction in rates differential Stretched incline the risks towards a thrust below the middle zone of 1.43 at least in the short term. ”
“Trends in cash are leaning a little more down for USD after earnings at the beginning of the week were limited in the low zone of 1.45. The losses of the USD yesterday add to the negative appearance of the USD in the short -term price action and the image of a strong resistance that is being developed in the low/average area of 1.45 now. The USD support is maintained in 1,4350 Technically prone to more losses, it continues to enjoy a solid bullish impulse in intradic and newspaper oscillator studies.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
