The U.S. dollar, which has had the wind in its sails since the start of the year, has now hit a particularly rough patch, especially against the euro (EUR) and yen (JPY). This trend continued yesterday, with growing doubts as to the Republican administration’s ability to successfully carry out their promised economic reforms leading to a movement to “sell the USD and buy EUR and/or JPY”. This will certainly bear watching.
Closer to home, the loonie was up a few points against the greenback last week, but dropped substantially against the EUR and JPY. OPEC announcements regarding oil output cuts and positive Canadian economic data served as catalysts for our currency against the greenback. It should be noted that OPEC members will be meeting on Thursday in Vienna to discuss their strategy regarding their oil production.
For this shortened week, we’ll be preparing for the Bank of Canada’s key rate decision on Wednesday at 10 a.m. More details to come.
