Although the USDCAD bullish momentum has been in complete overdrive since the Royal Bank of Canada (RBC) confirmed late November that the substantial drop in oil would be negative for the Canadian economy, the pair has stormed forward by a further 400 pips in just over a day following poor Canadian data providing uncertainty regarding its economic future, alongside an unexpected interest rate cut from the RBC shocking observers. The USDCAD rocketed to its highest level since April 2004 at 1.2317 following the RBC cut, which provides just another example of a central bank performing a complete U-turn in monetary policy and perhaps fueling further concerns over global economic progress, as the divergence between both economic sentiment and monetary policy from central banks is becoming clearer to see.
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AUD/USD extends gains due to improved risk appetite
The Australian Dollar maintained its winning streak for the fourth consecutive session on Monday, buoyed by a hawkish sentiment surrounding the Reserve Bank of Australia. This optimism bolsters the strength of the Aussie Dollar, providing support to the AUD/USD pair.
USD/JPY snaps three-day losing streak above 153.50, Yellen counsels caution on currency intervention
The USD/JPY pair snap a three-day losing streak during the Asian trading hours on Monday. The uptick of the pair is bolstered by the modest rebound of the US Dollar and US Treasury Secretary Janet Yellen’s comments on potential Japanese interventions last week.
Gold holds below $2,300, Fedspeak eyed
Gold price loses its recovery momentum around $2,295 on Monday during the early Asian session. Investors will keep an eye on Fedspeaks this week, along with the first reading of the US Michigan Consumer Sentiment Index for May on Friday.
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Bitcoin Cash is the current mania in the Cardano ecosystem following a proposal by the network’s executive inviting the public to vote on X, about a possible integration.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.