The Loonie rallied during the New York session, trading at 1.2820 at the time of writing. In the Asian session, the CAD had the upper hand against the US Dollar, amid a recovery in crude oil prices, after an overextended fall on Friday’s of last week that witnessed a drop of 12% in the day. However, Moderna’s CEO comments that a drop in current COVID-19 vaccines effectiveness prompted a spike from 1.2740 to 1.2790, ultimately gaining follow-through on Federal Reserve Chair Jerome Powell’s remarks during a hearing at the US Senate Committee on Banking and Housing.
Fed’s Chair Powell has said that high prices are to be blamed for supply-demand problems, though reinforced that those increases have spread broadly. Additionally, he noted that “risks” of higher inflation have increased and said it is time to retire the word “Transitory” when talking about inflation.
When he was asked about the COVID-19 omicron variant, he said that he “will know within a week or 10 days, can only assess the impact on the economy then.”
The US macroeconomic agenda so far featured the S&P/Case-Shiller Home Price Index (MoM) for September, which rose by 19,1%, more than the 19.3% expected. Meanwhile, the Chicago Purchasing Managers Index for November increased to 61.8, lower than the 67 estimated.
Looking forward, Fed Chair Powell will testify, and the ADP Non-Farm Employment Change and ISM Manufacturing PMI will be released in the US. Furthermore, the Canadian monthly Building Permits and Crude Oil Inventories are going to be released.
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