We are seeing a lot of new buying of the Canadian dollar. The central bank continues to tighten and everyone is talking about the election. We expect continued strength in the Canadian dollar.
We are seeing a little retraction. Some people took profits by selling the Canadian dollar and buying euros.
Obviously, a little more tepid than what markets were expecting.
People are falling out of love with the dollar. The U.S. data was on the disappointing side. That doesn't help.
I'm still looking for places to sell the dollar. We're assuming that the Fed is nearing the end of its tightening cycle. That's a reason to sell dollars.
The stock market declines are a little bit scary. People want to take the dollar weaker.
Any weakening of the Canadian dollar represents a chance to buy more of the currency.
As a result of this, people are calling for one or two more Fed moves. The dollar is going to be a little bid on this one.
Although the dollar rallied earlier, we still have some support levels that weren't broken.
A lot of this is contingent on the Bank of Canada statement.
It's got everybody on their heels. Most people are short the U.S. dollar.
That is obviously a direct driver of inflation.
The ISM manufacturing number was really stronger than expected. Obviously we've seen a sell-off in the U.S. bond market. As a result of this, people are calling for one or two more Fed moves.
I don't think this is a bearish report because average hourly earnings are ticking up significantly,
