Account to Account
USD to CAD Morning Update — September 14, 2020
All is (mostly) quiet on the Canadian dollar front as the Loonie is up just 0.1% over Friday’s close. The equity markets have started the week by making an attempt to regain the ground lost in the last couple of weeks, especially in the tech sector. The Nasdaq is up 1.3% at the open but it is unclear whether the recent volatility has in fact ended. Oil is down modestly by 0.5% on ongoing demand concerns. The most important upcoming event for the currency markets is Wednesday’s Federal Reserve meeting, which will be its first since Chairman Jerome Powell unveiled a policy shift towards greater tolerance of inflation, effectively pledging to keep interest rates low for longer. If the Fed backs up its recent change in inflation targeting by, for example, giving greater forward guidance with respect to how long rates are expected to be kept at low levels, then the US dollar will likely be softer towards the end of the week.