Bank of Canada doubles down on dovishness
FX Trader, Loonieviews.net
Summary: USDCAD soared to 1.3519 from 1.3440, despite a surge in WTI oil prices to $64.24/barrel because of another dovish Bank of Canada monetary policy statement in which it underscored its dovish bias by dropping any reference to future rate hikes.
USDCAD is poised for further gains. The break of 1.3460 set the stage for a test of the 1.3520-60 resistance zone, which if broken suggest further upside to 1.3660 and then 1.3790.
The USD dollar is mixed in New York trading CAD led AUD, NZD, and EUR lower, while JPY, GBP and CHF inched higher.
Wall Street broke a couple of records yesterday. The S&P 500 and Nasdaq set new closing highs, and so did Canada’s S&P/TSX. Those markets opened flat this morning, but that may just be the calm before the surge. Traders are waiting for Facebook (FB: Nasdaq)and Microsoft (MSFT: Nasdaq) quarterly results after the close and digesting last night’s Twitter results (TWTR: Nasdaq) and this morning’s earnings report from Boeing (BA: NYSE) Twitter is down 1.9% despite better than expected results while Boeing shares rose 1.5% even though they dispensed with 2019 financial forecasts and share buybacks.
Pacific Gas and Electric (PCG: NYSE) shares surged 17.9% in pre-market trading after a Bloomberg story said that Berkshire Hathaway was in talks to buy the company. Berkshire CEO Warren Buffett denied it. He said the report is "100% not true" adding "I would know." Prices dropped but are still up 7.8% since the close.
Latest Market Insights
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Energy crisis could turn energy stocks into secular winnerWith long-term expected returns for the global energy sector close to 10%, we look at 40 stocks that could be set to cash in.
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.