Tuesday, maintained by aggressive comments from Canada’s central bank, the Canadian dollar climbed to its highest level in nearly two months. At one point, the Canadian dollar was at its strongest since April 17 at C$1.3274 per United States dollar, prolonging gains after rising more than 1% on Monday. The currency last traded at C$ 1.3293, up around 0.2% on the day.
Carolyn Wilkins, Bank of Canada’s Senior Deputy Governor claimed on Monday, that the first-quarter growth was pretty remarkable and that Canada’s economic growth is widening that would lead the central bank to consider whether current low rates would still be required. As such, Sue Trinh, head of Asia FX strategy for Royal Bank of Canada in Hong Kong said that Wilkins delivered a much more aggressive signal that they’ve seen from the central bank in some time.
Thus, chances of a rate hike by the end of 2017 form the Bank of Canada have climbed up greatly, as markets are now pricing in more than a 50% chance.
On the other hand, in accordance to these events, Pound sterling wobbles as the result of Thursday’s United Kingdom general election shocked Britain, which left Prime Minister Theresa May short of a parliamentary majority that would have strengthened here hand as Britain organizes for Brexit negotiations with the European Union.
Pound sterling slipped 0.1% to $1.2653, after shredding 2.3% in the previous two trading days.
The dollar on the other hand stood firm against the safe-haven yen and the euro ahead of the Fed’s two-day policy meeting starting later on Tuesday. The greenback steadied against the yen at 109.97. The euro on the other hand slipped 0.1% to $1.1193