Patience was the watchword used by two central bankers from North America yesterday. In the U.S., Federal Reserve Chair Janet Yellen stated that the Fed will take its time before beginning to tighten its monetary policy, for fear of hindering the economic recovery taking place in the U.S. She said that the Federal Reserve would continue to be transparent for its forward guidance. Putting her money where her mouth was, she then stated that a rate hike was unlikely in the short term in the current economic climate.
Here at home, Governor Stephen Poloz said that he would be patient before lowering the key rate once again. The surprise rate cut on January 21 should allow the Bank of Canada to take some time and better understand the impact of collapsing crude oil prices on the Canadian economy. His two statements caused the loonie to rise by close to 2% against the greenback.
Today, there are no major economic indicators on the schedule. Mario Draghi will address the European Parliament, and Janet Yellen will address the U.S. Congress. Have a great day! Salim Laaroussi
Range of the day: 1.2385 - 1.2495