Introduction In today’s globalized economy, the need to transfer money across borders is more common than ever—whether for purchasing property abroad, paying for education, or supporting family overseas. However, international…
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News and Updates
Despite a strong rebound on Friday, the Canadian dollar was lower against most major currencies for the week. The USD/CAD pair traded as high as 1.3745 early in the week before pulling back to the mid-1.36 range on Friday. The Canadian dollar’s strength came despite the release of weaker-than-expected retail sales numbers in Canada.
The USD/CAD currency pair is slightly higher in early afternoon trading on Wednesday as markets nervously await the release of the Federal Open Market Committee (FOMC) minutes later in the day. Markets are looking to the release of the FOMC minutes to possibly shed light on when the Fed will feel confident enough to shift into its rate reduction cycle. Currently, markets are anticipating a rate cut in September or November of this year.
Heading into the Victoria Day long weekend, the Canadian dollar is sitting pretty. It has gained 1.5 cents this month against the US dollar, following an explosive jobs report last Friday and weaker-than-expected economic data from the US. Just as recently as two weeks ago, economists were floating the idea that the BoC could be cutting rates at the same time as the Fed was increasing interest rates. This would have been the definition of a disastrous situation for the Canadian dollar.