FX Closing Comments
Dollar continues to wage war on the Euro and Yen posting a third straight day of modest, but stable gains. EUR/USD broke through resistance at 1.1900 but failed to spark a significant rally, stalling at 1.1880 after making a run down to 1.1869.
Canada's Central bank did increase interest rates 25 basis points as expected to 3.75%. Commentary regarding economic conditions were toned down from earlier hawkish statements in response the high value of the Canadian Dollar: “Information on the Canadian and global economies received since the January Monetary Policy Report Update has been broadly in line with the Bank's expectations, although the Canadian dollar has recently moved above the range that had been assumed in the Update.” This is the only comment on the dollar. The economy is as expected, though the dollar is stronger. Although it's a very neutral comment, the fact that the Bank even mentions the loonie shows it is at least on its radar screen, but not at a troubling level at the moment. When policy makers meet again in April, a further interest rate hike is expected.
Canada's Central bank did increase interest rates 25 basis points as expected to 3.75%. Commentary regarding economic conditions were toned down from earlier hawkish statements in response the high value of the Canadian Dollar: “Information on the Canadian and global economies received since the January Monetary Policy Report Update has been broadly in line with the Bank's expectations, although the Canadian dollar has recently moved above the range that had been assumed in the Update.” This is the only comment on the dollar. The economy is as expected, though the dollar is stronger. Although it's a very neutral comment, the fact that the Bank even mentions the loonie shows it is at least on its radar screen, but not at a troubling level at the moment. When policy makers meet again in April, a further interest rate hike is expected.
posted by XPRESSTRADE, LLC at 3/07/2006 01:31:00 PM
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