USD Stronger Against Most Currencies

By MoneyWay | Nov 7, 2017

 

Canadian Dollar along most G10 currencies, fell to the USD. No clear reasons for the USD to strengthen, more a case of it’s sold off to come back into buying range for investors. Although oil is trading at a two year high, the Canadian dollar is impervious to its movement, analysts are more focused on today’s comments from Bank of Canada Governor, Poloz, expectations are that the B of Canada will remain vigilant on its hawkish tone and it will look to hike rates as soon as possible.

Greg Quinn of Bloomberg Reports:

“Bank of Canada Governor Stephen Poloz defended the use of inflation targets through a period of global weakness, and said price gains will quicken as his economy moves toward full potential.”

The Canadian Press Reports:

Energy and mining stocks propelled Canada’s main stock index to a record high today on the strength of spiking commodity prices.

The S&P/TSX composite index was up 72.04 points to 16,092.20 in a broad-based advance led by several major sectors.

“Shares of oil and gas stocks surged more than 2.5 per cent as the December crude contract soared US$1.71 to US$57.35 per barrel. It’s the first time since mid-2015 that the price of oil has cracked the US$57 mark.

Meanwhile, the gold sector rose more than 1.6 per cent, with the December bullion contract up US$12.40 to US$1,281.60 an ounce.

In New York, it was another quiet but positive day as stock indices closed at all-time highs on Wall Street.

The Dow Jones industrial average was up 9.23 points to 23,548.42, the S&P 500 index eked out 3.29 points to 2,591.13 and the Nasdaq composite index advanced 22.00 points to 6,786.44.”

XE Reports on the currencies market:

US DOLLAR

The US Dollar is higher across the board today with little catalyst other than hopes that tax reform will eventually progress through the US legislator. Relative monetary policy outlooks are also factoring, benefitting the US Dollar.

BRITISH POUND

The Pound has had a day of two halves, having moved higher early in the European session, only to slide rapidly against both the Dollar and the Euro through the afternoon with no obvious reason. Halifax reported annual house price growth was 4.5% in October, taking the average UK house price to a record of £225,800.

EURO

The Euro hit a fresh 3-month low versus the Dollar after a larger than expected fall in German industrial production last month, though this looks like an anomaly against a backdrop of strong growth in Europe’s largest economy. A report that some heavyweight ECB policymakers opposed the stance on Q.E. being open-ended has reaffirmed the prognosis that the program is nearing completion, giving the Euro a short-term lift. Risks, for now, point lower as the prospect of higher Eurozone interest rates remains way off in the distance.

CANADIAN DOLLAR

The Loonie is down 0.7% from Monday’s close and weakening in tandem with most of the G10 currencies in an environment of broad-based USD strength. There appears to be a ‘risk-off’ tone to the markets as we approach the end of the European session that is hitting the commodity-linked currencies. Still to come for the Loonie is BoC Poloz’s speech on the topic of ‘central banks’ ability to understand inflation.

AUSTRALIAN DOLLAR

The Aussie Dollar is down 0.8%, the worst performing G10 currency after the RBA kept rates on hold at record lows for a 14th straight month, and signaled they are likely to stay on hold for months to come as “inflation is likely to remain low for some time”. They remained upbeat on expectations for economic growth and unemployment, but cautioned “household incomes are growing slowly and debt levels are high”.

FEATURED CURRENCY

 

 

Visit us in-store for the best rate!

Where to Find Us

Get Daily Rates in Your Email Inbox