Yen weakens amidst Bank of Japan's interest rate decision: market analysis and USD strength
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.3525-1.3625
Euro 1.4700-1.4800
Sterling 1.7200-1.7300
WTI Oil (opening level) $82.65
The US Dollar index is marginally stronger this morning as the currency markets reacted to the increase in interest rates by the Bank of Japan moving away from their negative interest policy. But a little unexpectedly the Yen actually weakened as the Central Bank came out and said that they were not embarking on a tightening cycle over the coming months, they would look at the interest rate level on a one-off basis. USD.JPY jumped over 150 points and CAD.JPY jumped about 70 points so overall a tough night for the Yen,
The Canadian Dollar is a little weaker against the US Dollar this morning as USD.CAD opens the day near the 1.3570 (0.7369) level as the market awaits the inflation report for February. The market consensus is for a rate of 3.1% which would be a slight uptick from the 2.9% reading in January. The Core reading which the Bank of Canada looks at closely is expected to be 2.4% which would also be a little higher. Unless the reading is quite higher than the expectation the Loonie will remain under pressure.
Stocks are pointing lower to start the day and the US Dollar should remain supported as the market awaits word from the Federal Reserve tomorrow.
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Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.2550-1.2650
Euro 1.4850-1.4950
Sterling 1.7350-1.7450
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.2350-1.2450
Euro 1.4350-1.4450
Sterling 1.6900-1.7000