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27 Mar 2015
USD/CAD back above 1.25, GBP outperforms – TDS
FXStreet (Barcelona) - Jacqui Douglas, Chief European Macro Strategist at TD Securities, updates the FX market performance during the European trade, noting that falling oil prices has benefited USD/CAD and USD/NOK, while GBP is seen outperforming after Carney’s speech.
Key Quotes
“The USD continued to gain ground through the European session, with EURUSD falling back to just above 1.08 and commodity currencies largely underperforming.”
“USDNOK rose back above 8.0 as crude oil continued to come off of yesterday’s highs, with Brent crude back at around $58bbl and WTI just above the $50bbl mark.”
“CAD is holding up maybe a bit better than expected in the face of falling oil prices, but USDCAD has still rallied back above 1.25, as it pushes toward the 1.2540ish highs from the last three trading sessions."
“On the other side of the ledger is GBP, which has outperformed on slightly more hawkish comments from the BoE’s Broadbent this morning, as he repeated what Carney said recently, that policy should not overreact to low inflation.”
“We also had Haldane speaking this morning, who didn’t say much, and Governor Carney, who did reiterate that the next interest rate move is likely to be up.”
“Barring any surprise comments in the weekend press, this will be the last that we hear from the BoE for quite some time, as its pre-election purdah begins already on Monday. So the next time we hear from any BoE speakers will be with the release of the next Inflation Report on 13 May.”
Key Quotes
“The USD continued to gain ground through the European session, with EURUSD falling back to just above 1.08 and commodity currencies largely underperforming.”
“USDNOK rose back above 8.0 as crude oil continued to come off of yesterday’s highs, with Brent crude back at around $58bbl and WTI just above the $50bbl mark.”
“CAD is holding up maybe a bit better than expected in the face of falling oil prices, but USDCAD has still rallied back above 1.25, as it pushes toward the 1.2540ish highs from the last three trading sessions."
“On the other side of the ledger is GBP, which has outperformed on slightly more hawkish comments from the BoE’s Broadbent this morning, as he repeated what Carney said recently, that policy should not overreact to low inflation.”
“We also had Haldane speaking this morning, who didn’t say much, and Governor Carney, who did reiterate that the next interest rate move is likely to be up.”
“Barring any surprise comments in the weekend press, this will be the last that we hear from the BoE for quite some time, as its pre-election purdah begins already on Monday. So the next time we hear from any BoE speakers will be with the release of the next Inflation Report on 13 May.”