– Swiss National Bank hikes rates 50 bps says banking crisis over.
– Bank of England expected to raise rates by 25 bps due to hot inflation.
– US dollar extends post FOMC losses overnight.
USDCAD snapshot open 1.3673-78, overnight range 1.3676-1.3733, close 1.3731, WTI $70.13, Gold $1978.35
The Canadian dollar got a lift from broad-based US dollar selling in the wake of yesterday’s FOMC monetary policy decision.
The FOMC raised its benchmark overnight rate by 25 bps to 5.0% and tweaked the language in the statement.
Traders reacted like it was a “dovish hike” after the statement removed the reference to “ongoing hikes” and replaced it with “some additional policy firming.” The tweak implies that policymakers are very close to ending the current rate hike cycle and traders are betting on rate cuts later in the year.
However, the Summary of Economic Projections dot-plot outlook indicates rates will remain … Read more