Calm day on markets
The Canadian dollar was stable yesterday, trading in a narrow range between 1.2510 and 1.2560. Other than a slight dip in crude oil prices, there was little in the way of developments to move the needle on the loonie. The situation will no doubt be similar today, with no announcements on the agenda. Bank of Canada Governor Stephen Poloz will be in Los Angeles today and comments regarding the loonie and our economy could make the news during his speech scheduled for 12:30.
Elsewhere, the weakness of the U.S. dollar is also being felt in Japan. Bank of Japan Governor Haruhiko Kuroda reiterated that he is closely monitoring the recent rise in the yen on the country’s economy. He stated that he would not hesitate if necessary to employ stimulus measures to help the Japanese economy and ease up on monetary policy.
The Reserve Bank of Australia surprised economists and investors this morning by cutting its key rate 25 bps to 1.75%. The central bank accomplished its mission of stimulating the economy and exports, with the Australian dollar plunging 1.25%.
