The forex market is calm this morning with most major exchange rates unchanged from yesterday. Investors are pondering comments by Federal Reserve Chairman Powell who very gingerly broached the topic of an “eventual” and “very gradual” removal of the stimulus that has boosted the markets during the pandemic. Those comments come a day after a Deputy Governor of the Bank of Canada expressed similar (though seemingly more imminent) sentiments about the monetary stimulus in Canada. Oil prices remain near one-month lows after a temporary pop yesterday related to the halted traffic of tankers at the Suez Canal. The overall softness in oil is being attributed to fresh lockdowns in Europe dampening demand. USD to CAD is now trading very near our short-term forecast (end of March) and it is hard to see it moving much between now and the end of the month.
