The US dollar is now trading at its lowest point since February of 2018 against the Canadian dollar. The USD weakened notably yesterday yesterday after dovish comments from both Fed Chairman Powell and Governor Macklem of the Bank of Canada but the Canadian dollar is getting a further bounce this morning from oil prices which are now up another 2% on strong demand expectations. Yesterday, the focus was in the slight and nuanced differences between Powell’s testimony and Governor Macklem’s speech later in the day. Both of them were dovish and shrugged off inflation fears, which had perked up recently, and both indicated that full recovery was still far off and that monetary policy would remain accommodative. However, Macklem acknowledged a potential reduction in purchases of government bonds in Canada was possible before full recovery was under way and also noted the run up in housing, though he did not overly seemed concerned with it. The net result is that the US dollar declined against most major currencies and especially against the Canadian dollar. Powell continues his testimony today and that could move markets again.
Account to Account