The FOMC’s comments yesterday showed that the Federal Reserve could not ignore the current inflation numbers any longer. It indicated that it would likely move its first rate hike by the end of 2023,however, it would be a modest one at best. That being said, the global economies have yet to fully realize a sense of normality and it’s then that central bankers can start to assess inflation’s full impact. Once this is done, then we can see when the next rate hike is.
The Canadian dollar is weaker, basically everything is weaker, including oil, the CAD had flown against the wind in terms of being overbought and markets now have a reason to sell. The CAD is at its weakest level in two months and will likely trade from a weak position in the short term.
Currently* Close Range
USDCAD 1.2350 1.2276 1.2262-1.2356
EURCAD 1.4701 1.4724 1.4679-1.4734
GBPCAD 1.7180 1.7170 1.7157-1.7221
*Indicative rates only
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