The Currency Scene:
News, Events, and Stories about currency from around the world.

FX TALKING POINTS:

- USD/CAD[1] Bullish Sequence Fizzles Despite Cautious Bank of Canada (BoC) Comments, Strong U.S. Consumer Confidence Survey. All Eyes on U.S. Gross Domestic Product (GDP) Report.

- NZD/USD[2] Eyes 2018-Low as 10-Year U.S. Treasury Yield Spikes Above 3.00%. Relative Strength Index (RSI) Approaches Oversold Territory.

DailyFX Table

BULLISH USD/CAD SEQUENCE CONTINUES TO TAKE SHAPE AHEAD OF BANK OF CANADA (BOC) TESTIMONY. ALL EYES ON GOVERNOR STEPHEN POLOZ.

USDCAD Table

USD/CAD struggles to extend the recent series of higher highs and lows even as the Bank of Canada (BoC) strikes a cautious tone in front of lawmakers, and the pair may stage a larger pullback over the coming days should fresh data prints coming out of the U.S. economy undermine the Federal Open Market Committee’s (FOMC) scope to extend the hiking-cycle.

The testimony with BoC Governor Stephen Poloz suggests the central bank remains in no rush to implement another rate-hike as ‘some degree of monetary policy accommodation will likely still be needed to keep inflation on target,’ and the wait-and-see approach may continue to generate headwinds for the Canadian dollar[3] as the FOMC[4] pledges to implement higher borrowing-costs over the coming months.

With that said, the limited reaction to the better-than-expected U.S. Consumer Confidence survey keeps the Gross Domestic Product (GDP) in focus as the fresh updates are expected to show a downtick in the growth rate, but a material pickup in the core Personal Consumption Expenditure (PCE), the Fed’s preferred gauge for inflation, may ultimately boost the appeal of the greenback as growth starts to exceed the 2% target.

USD/CAD DAILY CHART

USDCAD Daily Chart
  • Lack of momentum to extend the bullish sequence may

Read more from our friends at Daily FX:

Pin It

The Logo Story

currensceneFLOGO WHTsquareThough not the oldest form of currency, some form of shell money appears to have been found on almost every continent. The shell most widely used worldwide as currency was the shell of Cypraea moneta, the money cowry.

Visit the CurrenScene Media Page