The Canadian dollar slid yesterday, after the BoC fully abandoned its hiking bias. However, the currency recovered a large portion of those losses during Governor Poloz’s press conference. Perhaps investors interpreted Poloz’s remarks as being less worrisome than the tone of the statement. Overnight, the BoJ kept its ultra-loose policy unchanged and adjusted its forward guidance. That said, the yen barely reacted. As for today, the central bank torch will be passed to the Riksbank, where market participants may be eager to find out whether officials are still willing to hike later this year, or not.
BoC Removes Reference to Higher Rates, BoJ Tweaks Forward Guidance
The US dollar continued outperforming almost all the other G10 currencies. It gained the most against NOK, SEK and EUR. The only currency against which it failed to eke out gains was CHF, with USD/CHF found virtually unchanged this morning.
The Loonie ended the day lower against its US counterpart, but the ride was not a smooth one. The Canadian currency traded in a roller-coaster manner and responsible for...
Read the full financial markets daily report on JFD Research.