Further to the release of the most recent FOMC Meeting minutes, which took place on March 18 and 19, the USD lost ground against all of its counterparts. A more accommodating-than-expected tone helped boost stock markets, which have been reassured by the Fed’s continued support.
You may recall that this is the opposite of what happened when Chair Yellen stated that the Fed would raise its key rate six months after the end of the quantitative easing program, sending the USD to new highs for the year. This blunder was attributed to her inexperience with press conferences. Nonetheless, her statement resulted in a volatile spread of over 400 points in the US currency market. We therefore remind all of our clients about the importance of managing risk in order to protect margins.
In other news, an expected drop in Chinese exports stimulated demand for more secure assets, such as the yen, which gained ground overnight. The euro continues to approach its highs of late March. Today, we are keeping a close eye on U.S. employment and imports figures and Canadian real estate data.
