Yesterday we were focused on USD performance. After all, Jerome Powell was due to give a speech and we were worried about what was going to happen with the chart and with USD, although we were kinda hoping that USD growth might be knocked off a bit, so that other currencies have all the possibilities to grow. And of course, that exact thing happened. USD fell, and so all of its peers gained a perfect possibility to grow.
That was the possibility used by CAD as well. As we can see USD/CAD chart has been falling, which means that even against Canadian dollar, USD was powerless. But today everything might change, as traders around the world wake up and see the fallout of the speech of BOC Governor Poloz. Yes. Powell is not the only one whose speeches are awaited. All of the national banks’ heads are subjected to this fate.
Ahead of the speech CAD held the lowest position in a month, but the slide of the greenback allowed it to strengthen its position a little bit. Even though Poloz’ outlook on Canadian economy was far from perfect. For instance, Poloz said that Canadian wage inflation is now above 4%, which is not a good light for the national economy of Canada. It is going to be very interesting to see what is going to happen to the currency couple as traders in Europe come to their desks.
Changes is USD/CAD performance are inevitable. Wait and see what is going to happen to it with our trading signals.