FX Update - USD/CAD
First Published Monday, 13 July 2009 06:26 pm - © 2009 Need to Know News
USD/CAD showed very little reaction to the BoC announcement and statement, though the comments on the CAD could give Loonie bulls some pause. The Bank said the appreciating CAD "reflects a combination of higher commodity prices and generalized weakness in the US currency." If recent strength proves persistent, the Bank said that could "fully offset" the recent improvement in financial conditions, commodity prices and business and consumer confidence.
USD/CAD has traded between 1.10-11 since the announcement, though option expiries at either end of this band could contain the pairing until after 10:00 EDT.
