– European and many European markets closed for holidays.
– FX focus shifts to Fed after talk of debt ceiling deal.
– CAD best performing G-10 currency since Friday open.
USDCAD snapshot: open 1.3596-00, overnight range 1.3586-1.3617, close 1.3617, WTI $72.53, Gold $1946.01
The Canadian dollar came under pressure Friday after hotter-than-expected US PCE data fueled speculation the Fed would raise rates by 25 bps at its June 14 meeting.
That’s a U-turn from sentiment at the beginning of the month. Fed Chair Powell’s May 3 press conference concluded with most analysts believing the latest increase was the final hike for this cycle. A series of robust US economic reports forced market participants to re-evaluate their outlook for FOMC monetary policy.
The odds for rates to increase to 5.50% on June 14 are 66% and analysts have pushed calls for the first rate cut out to November from July, earlier … Read more