The Canadian dollar traded stronger Monday then consolidated the gains overnight. The ebbs and flows of global risk sentiment dictated price action.
The EUR is the best performing major G-10 currency since Friday’s NY open, rising 1.14%. That rally undermined broad US dollar sentiment ang the greenback fell across the board.
European Central Bank President Christine Lagarde sparked the EURUSD rally when she predicted a July rate hike, the first since 2010). Her hawkish comments were posted on her blog. She wrote that “net purchases under the APP (Asset Purchase Program) would end early in the third quarter. This would allow us a rate lift-off at our meeting in July.
EURUSD soared, rising from 1.0562 at Friday’s close to 1.0735 just before NY opened today. Ms Lagarde claims that a rate hike would not constitute a tightening of monetary policy, but instead said “leaving policy rate unchanged in this environment would constitute an easing of policy which is not currently warranted.”
Today, the FOMC minutes will be released. In Canada, the next important economic report is due on Thursday with retail sales.
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