The Bank of Canada left the interest rate unchanged at 5.00%, but warned that persistent inflationary pressures could force further increases.
➡️ The Bank of Canada held a policy meeting yesterday in which it kept the interest rate at 5.00%, but warned that further increases were possible because inflation had not cooled sufficiently. This was seen overall as a slightly hawkish stance, although the Canadian dollar barely reacted to the news.
➡️ WTI Crude Oil fell slightly yesterday after recently hitting a new multi-month high price, as Saudi Arabia and Russia have confirmed they will continue to restrict supply until the end of 2023.
➡️ In the Forex market, the USD/JPY currency pair rose again to a new 10-month high above ¥148.75 yesterday before selling off slightly. Yesterday, Japan's top currency diplomat, Kanda, said foreign exchange movements were being monitored urgently while all options remain on the table – a threat of central bank intervention due to the continued weakening of the Japanese yen. There is a real fear of market intervention by the Bank of Japan if the yen continues to depreciate.
➡️ The US dollar remains strong, with the dollar index yesterday reaching its highest price in more than 4 months.
➡️ Bitcoin threatens to plummet to new 2-month lows as the cryptocurrency sector remains quite weak.
➡️ Stronger than expected ISM US services PMI data were released yesterday, which may have aided yesterday's gains in the US dollar, increasing the perception that the Fed may raise prices again.
➡️ US unemployment claims will be released later today.
Credit by DailyForex.com