A great deal of volatility for the Canadian dollar!
Waves of volatility continue for the Canadian dollar, which went on another roller coaster ride yesterday. Our currency firmed up late in the session after having a rough morning. In remarks to the House of Commons in Ottawa, Governor Stephen Poloz briefly hinted that the Bank of Canada would leave its key rate unchanged for the next 18 months, as he believed it would be the best approach to support the country’s two-track economy. Early in the evening, Poloz clarified his comments by stating that the 18-month timeframe was in fact a reference to how long it would take to close the output gap between potential GDP and real GDP!
The euro is stable this morning after losing more than 3% against the USD over the past month. Meanwhile, the yuan is now trading at its lowest level since September 2010 against the U.S. dollar. In economic news, we’ll be keeping an eye on the Conference Board’s Consumer Confidence Index this morning as well as the Richmond Federal Reserve’s Manufacturing Index. We will also be interested in what Atlanta Fed President Dennis Lockhart has to say when he speaks early this afternoon.
