| Wrap Up |
| The Canadian dollar rallied against its broadly weaker U.S. counterpart as the Federal Reserve signaled no intention to raise interest rates over the next year, bolstering the outlook for the global economy. The U.S. central bank left the benchmark overnight lending rate in its current, historically low, target range between 1.50% and 1.75%. A solid majority of 13 of 17 Fed policymakers foresee no change in interest rates until at least 2021. Gains for the loonie were restrained by the potential for BoC Governor Stephen Poloz, who is due to speak on Thursday, to react dovishly to the jobs data. Poloz’s speech will be the first since the BoC said he would step down in June. The two-year bond rose 2 Canadian cents to yield 1.658% and the 10-year bond was up 18 Canadian cents to yield 1.580%. |
| Levels and recommendations |
| The euro stood near five-week highs before new European Central Bank President Christine Lagarde’s first policy meeting, after the Federal Reserve’s forecast that it would keep rates on hold through 2020. The British pound stepped back from a near nine-month high as investors booked profits from a recent rally in case of a surprise UK election outcome later in the day. Argentina’s peso currency opened largely unchanged after new Economy Minister Martin Guzman laid out a broad vision for handling the spiraling debt crisis in Latin America’s #3 economy, focused on reviving growth and maintaining a constructive dialogue with creditors. The Canadian dollar is trading flat around 1.3175 as investors are awaiting a speech by BoC governor that could help offer clues on the outlook for interest rates. Meanwhile the crude oil prices is rising as the global oil demand rose by 900K barrels per day, highest annual growth, which provided some support to loonie. The USDCAD pair has an immediate support level at 1.3150. |