Markets are waiting for the FOMC minutes to be released, analysts are looking for direction from the FED as to whether it will be changing its forecasts. The FED has continued to reiterate that the current inflation spike is nothing more than a spike and will start to come back to historical levels by year end. Currently, commodities may be signaling that indication, oil prices have fallen another 2%, down 5% from its highs, while metals are mixed, copper is still around $4.30 USD a pound, below its 60 day moving average of $4.45 USD.
The Canadian dollar continues to be impacted by oil prices and the potential for possible rate hike calendar changes in the U.S., the weakness in the CAD should help Canadian exports while at the same time causing imports to become more expensive, this allows the Bank of Canada to refrain from changing its forecasts in the near term.
USDCAD 1.2498 1.2462
EURCAD 1.4743 1.4730
GBPCAD 1.7233 1.7195
*Indicative rates only