More of the same from the Bank of Canada (BoC) may curb the recent decline in USD/CAD as market participants scale back bets for an imminent rate-hike.
The Pound Sterling earlier hit a 4-day trough against the US Dollar after the unexpected release of inflation data which failed to meet analysts’ expectations.
Oil prices were broadly higher on Wednesday, supported by a decrease in U.S. inventories and continued concerns about geopolitical tensions which could interrupt supply.
Perhaps the largest feather in U.S. President Donald Trump’s “hat” is the tax reform bill that was passed late in 2017.
Earlier during Tuesday trade in London, the Pound Sterling had hit a 22-month high.
Stock markets edged higher on Tuesday as the dollar remained stable as earnings season began in earnest and mixed data out of China brought tempered optimism.
The Pound Sterling edged higher against the US Dollar with FX traders focused on the latest data which could help raise expectations of another imminent rate hike from the Bank of England.
Asian markets were trading mixed to start the week as traders eyed U.S. earnings season which is set to begin in earnest this week.
This week will see a somewhat lighter news agenda than last week, with central bank input expected from Canada and Australia.
The US Dollar saw broad gains after an improvement in risk appetite helped to bolster equities and push yields on US treasury instruments significantly higher.