USD/CAD back above 1.30 for highest level since November 2020
|- USD/CAD is 0.8% higher as the US dollar firms into the close on Wall Street.
- CAD is at the lowest level since Nov 2020 amid rising worries about the global economic outlook.
USD/CAD is ending on Wall Street in the green by some 0.8% following a final thrust to the upside in the US dollar. This has taken the Canadian dollar to its lowest level since November 2020 amid rising worries about the global economic outlook that has weighed particularly heavily on commodity-linked currencies.
The price of oil, one of Canada's major exports, settled 6.1% lower at $103.09bbls following yet further poor economic data out of the Middle Kingdom and considering that China's two largest cities tightened COVID-19 curbs.
Meanwhile, the Bank of Canada Deputy Governor Toni Gravelle is due to speak on Thursday and there will be ears to the ground for Federal Reserve speakers as well. On Monday, Minneapolis Fed President Neel Kashkari said the US central bank may not get as much aid from easing supply chains as it is hoping for in helping to cool inflation.
Atlanta Fed President Raphael Bostic said he doesn't see the case for 75bps hikes yet. He already sees signs of peaking supply pressures and that should give the Fed room to hike at half-percentage-point interest rate increments for the next two to three policy meetings.
As for the Bank of Canada, money markets expect the central bank to raise its benchmark rate by half a percentage point for a second straight policy meeting on June 1. Meanwhile, Canadian government bond yields have pulled back from fresh multi-year highs, tracking the move in US Treasuries. The 10-year touched its highest since May 2011 at 3.173% before sliding to 3.028%, down 9.7 basis points on the day.
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.