Forex Today: AUD, CAD rally on policy shift, a mix of CB speeches on tap
|Forex today was dominated by notable demand for the commodity-currencies, amid improving commodities’ price and a shift in gear towards more hawkish narrative by most major central bankers, with the latest hawkish remarks from BOC Governor Poloz having sent the CAD to fresh 4-month tops versus the greenback. Meanwhile, the Aussie gained briefly above 0.76 handle also on the back of rate hike chatter.
The US dollar extended weakness into Asia and clocked fresh seven-month lows at 95.92, as a delay in the vote on the Healthcare bill by Senate until July 4 recess. Meanwhile, the Asian markets traded largely subdued, as oil prices stall its recovery ahead of $ 44 mark.
All eyes now remain on a mix of central bankers’ (CB) speeches lined up at 1330GMT, with BOC Governor, Poloz, Fed Chair Yellen, BOE Governor Carney and BOJ Chief Kuroda gather at the ECN Sintra conference. On the data front, we have the Eurozone money supply data, followed by the US goods trade balance and pending home sales release. Also, EIA crude stockpiles report will remain in focus for fresh moves in oil and Loonie.
Main topics in Asia
Japan PM Abe favors looser Debt-to-GDP ratio target
Reuters is carrying the headlines, which says Japanese PM Shinzo Abe is looking to ditch a pledge to balance the budget by fiscal 2020.
BOC’s Poloz: Rate cuts have done their job - CNBC
Comments from the Bank of Canada (BOC) Governor Poloz hit the wires earlier on the day, as he spoke on the monetary policy and economic outlook during an interview with CNBC.
CME to launch Australian Wheat FOB (Platts) futures contract from July 24
CME Group announced to launch Australian Wheat FOB (Platts) futures contract from July 24, Livesquawk reported earlier today.
Ex-RBA’s Edwards: RBA could raise rates eight times in two years – BBG
Bloomberg out with headlines from the former RBA board member John Edwards, commenting on the future course of the central bank’s monetary policy.
Key Focus ahead
Eurozone credit and M3 data in focus – Danske Bank
Data on euro area credit and M3 growth are due out today and will be the main economic release according to the analysts at Danske Bank.
GBP/USD regains poise, eyes 1.2860 ahead of Carney
The positive bias seen around the spot is mainly driven by ongoing broad based US dollar weakness, as the USD bulls remained weighed down by the delay in the Healthcare bill vote.
EUR/USD unstoppable, looks to 1.1400 ahead of Draghi
Following a small drop on Monday, the pair has not only managed to revert the negative start but it has also climbed to levels last seen in June 2016 above 1.1360 ahead of the opening bell in Euroland.
GBP/USD Forecast: USD slump might continue to extend support
The greenback continues to weaken against its major counterpart, with the key US Dollar Index sinking to seven-month lows near the 96.00 handle during Asian session on Wednesday.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.