- CAD weaker as Bank of Canada plans to change emphasis
- A slew of US data later today
By David Johnson
The irony is strong with the US Dollar. A cautious Federal Reserve caused investors to seek a secure safe haven and that includes the US Dollar. So bad news strengthens the USD and good news strengthens the USD. As they say across the pond, ‘go figure’. To be completely fair, reasonably strong housing data did support the USD on Tuesday but the strength of the greenback had more to do with the risk aversion of investors. Beware that the slew of US data due today is forecast to be generally upbeat, so further USD strength cannot be ruled out. We are also seeing a fall in the crude oil price which tends to strengthen the currency in which oil is traded – the USD.
The Canadian Dollar lost a little ground on Tuesday after the Bank of Canada suggested it was reviewing how it managed economic policy and saw the tracking of inflation targets as insufficient for good monetary management. The GBPCAD exchange rate rose a cent on the day.
And crypto-currencies are at a 2018 low after a hugely volatile few years. The overall valuation of cryptocurrencies was soaring in January at around $800 billion but is valued at just $150 billion as at the close of play yesterday. Has the virtual currency market had its day? Well maybe but the technology upon which they are based, block chain, is just finding its real uses in secure messaging, file transfers, accounting and ledger management and other technologies. That is most likely where the real value lies.