– Canada February economic growth expected to slow to 0.2%.
– Bank of Japan leaves rates unchanged but announces monetary policy review.
– US dollar opens with gains fueled by dovish BoJ.
USDCAD snapshot: open 1.3653-57, overnight range 1.3593-1.3666, close 1.3591, WTI $74.92, Gold $1983.61
The Canadian dollar traded negatively overnight. It was not alone. All the major G-10 currencies suffered a similar fate after the Bank of Japan surprised markets with what was considered a dovish outlook.
The Bank of Japan its yield curve control (YCC) and policy interest rate unchanged. That was expected. However, traders expected a hawkish tweak to the outlook. It didn’t happen. Instead the market learned that policymakers planned a long, drawn-out monetary policy review which is anticipated to last between twelve and eighteen months.
USDJPY soared on the news rising from 133.37 to 136.18, and that move fueled broad US dollar demand against the … Read more