USD – The dollar index dipped in choppy trading on Tuesday as investors awaited inflation data on Wednesday that will be the next major indicator of whether rising price pressures are accelerating and whether the FOMC would need to take action sooner than anticipated.
Indeed, TD Securities argued that “Looking for any sort of major moves ahead of the US CPI tomorrow is going to be futile. We will likely see a little bit more movement on the FX side of things after CPI.”
CAD – The Canadian dollar recovered from its weakest level in four weeks as oil prices rose and investors awaited fresh impetus for direction.
Commenting on USDCAD, BMO Capital Markets noted that they “think markets are looking for the next catalyst. With the move we’ve seen in oil today and the drift down in global interest rates… the next substantive move in USD-CAD is lower.”
Indeed, TD Securities argued that “Looking for any sort of major moves ahead of the US CPI tomorrow is going to be futile. We will likely see a little bit more movement on the FX side of things after CPI.”
CAD – The Canadian dollar recovered from its weakest level in four weeks as oil prices rose and investors awaited fresh impetus for direction.
Commenting on USDCAD, BMO Capital Markets noted that they “think markets are looking for the next catalyst. With the move we’ve seen in oil today and the drift down in global interest rates… the next substantive move in USD-CAD is lower.”