Greenback Rallies
Although this week is a short one for most of us, it’s certainly likely to be an interesting one as we seek to determine whether the bearish pressures affecting the greenback over the past few weeks will persist. As the first increase in the Fed’s key rate, now estimated to take place in September, continues to be pushed back, the U.S. Dollar Index (DXY) has given up 2/3 of its gains for the year so far. For the moment, given that the euro is paying the price for the perspective of a boundlessly accommodative monetary policy, the USD could certainly win back some of its lost ground. Already yesterday, while we were still enjoying a long weekend, it gained ground against all the major currencies.
Today, we’ll be carefully listening to what Bank of Canada Governor Stephen Poloz has to say when he addresses the Greater Charlottetown Area Chamber of Commerce at 11:30 this morning. Before that, at 8:30, we’ll get an idea of how the U.S. real estate sector is faring when Housing Starts and Building Permits for April are announced.
