The U.S. dollar remained under pressure all day yesterday, and was sold off against the other global currencies. It is well known that the Federal Reserve does not like a strong USD and is not shy about saying so. Other central bankers are more discrete, using more indirect language to try to talk down their rising currencies: “the Bank of England has room for an interest rate cut if necessary,” GovernorMark Carney informed us yesterday and Bank of Canada Governor Stephen Poloz clarified that there
was “still plenty of excess capacity” in the Canadian economy during a question and answer session.These comments failed to have a visible impact on the CAD and GBP, which continued to rise
throughout the day.
The only event that does appear to have had an effect on the loonie is the end of the 3-day strike by oil sector workers in Kuwait, which had taken 60% of that country’s output off the market, an amount that corresponds to the surplus global supply compared to demand.
Late last night, crude oil and the CAD dipped, a trend that is likely to continue this morning, although significant movement is not expected.
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