Posted on 07/04/2016 7:30:24 PM PDT by Tolerance Sucks Rocks
The Canadian dollar has posted gains on Monday session, continuing the upward trend which marked the Friday. USD/CAD is trading at 1.2860. The Canadian dollar posted strong gains on Friday, which was somewhat surprising as Canadian markets were closed for Canada Day. US markets are closed on Monday for Independence Day, so there are no scheduled US events. Canada will publish Manufacturing PMI and the BoC Business Outlook Survey.
With the financial markets understandably focused on the stunning Brexit vote, the Federal Reserves monetary policy has shifted to the back-burner. That could change later this week, with the release of the Federal Reserve minutes. Will the minutes provide any clues about a rate hike? Yellen and her colleagues have sounded cautious about the US economy, and the financial instability caused by Brexit could delay any hikes until 2017. Gone are the heady days of last December, when the Fed raised rates and talked about a series of rate hikes in 2016. Meanwhile, June has come and gone, and the Fed hasnt made a move so far this year. Bottom line? Traders shouldnt count on an imminent rate hike to boost the US dollar; rather, the direction of the currency will largely be data-dependent the Fed is unlikely to seriously consider any rate hikes unless we see significantly improved employment and inflation numbers.
The Brexit vote to leave the European Union continues to cause deep instability in Europe and the UK and wiped out a staggering $3 trillion from global stock markets. Although the financial markets have stabilized, the British pound has shed about 11 percent since the vote, and continued to drop last week...
(Excerpt) Read more at marketpulse.com ...
CAD took a beating in tandem with the price of oil and has rebounded somewhat. Back in the early days of the current US economic woes, there was a fair amount of crowing about CAD-US dollar parity. It fell a considerable amount.
1 USD got me about 1.23 CAD last year when I was there.
Stronger play than the AUD/USD or EUR/USD. Every time i thought they were about to pop, nothing.
USD has been strong for an unusually long time.
That’s how I like it: King Dollar.
A strong currency has a downside. It penalizes exports and subsidizes imports. The dollar typically ebbs and flows, up and down like every other floating currency. It hasn’t moved much in a while. Seems manipulated, to me.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.