Cad Surges After BoC Hikes Rates
Last night we saw the Bank Of Canada hike rates for the first time since 2010 and once again traders jumped on the opportunity to buy Cad and we saw the Loonie drop nearly 2.5 big figures on the day, this reaction despite the Governor urging caution with any further moves.
In addition to action from north of the border we heard from the Fed Chair Janet Yellen who at last admitted that there is some concern over the inflation data and that the well anticipated 3rd hike is now probably only a 50% chance. This is a much more dovish stance than we’ve seen from the Chair and the dollar did get hit across the majors although noticeably not against the Euro which weighting’s helped keep the Dxy relatively bid in the circumstances.
Earlier in the day, across the pond in the UK we saw better than expected employment data which helped the sterling against the dollar and once again noticeably against the Euro as it’s recovered all of the previous day’s losses. Gold has also had a nice recovery over the the last couple of days and is pushing to challenge the resistance trend line today.
Looking ahead to today’s sessions and we have the Chinese Trade Balance due today in the Asian session, as usual there’s no definite time for it’s release, but Aussie and Kiwi traders will once again be watching it closely. It’s a quite day on the release front in the London session but we do have the US PPI and weekly unemployment claims out in the NY session.
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