If the Bank of Canadian continues to hike rates after the Federal Reserve pauses, it will narrow the rate differential between the two. This will make the Canadian dollar more favorable.
More Quotes from Michael Woolfolk:
The current account deficit has grown to a point where it arguably cannot be corrected by US action alone.Michael Woolfolk
Given the recent spate of positive January data, CPI and durable goods are unlikely to disappoint. Consequently, the USD is positioned to make new gains...as favorable U.S. growth and interest rate differentials weigh on market sentiment.
Michael Woolfolk
The weekend 'No' vote was deemed to be negative for the euro and has sent the eurodollar into a new trading range, ... It is quite possible that in the coming weeks we could get as low as 1.20 before the market decides that it has bought enough dollars for the time being.
Michael Woolfolk
The larger-than-expected rise in the headline and core PPI helped to reinforce the view that the Fed will continue raising interest rates at its next two meetings. Nonetheless, the core inflationary data remains particularly benign.
Michael Woolfolk
There was yen strength on the anticipation the Bank of Japan could be changing its monetary policy. Those expectations have been curbed.
Michael Woolfolk
This report is nothing short of remarkable. The formula for a strong dollar is strong growth, tight monetary policy and loose fiscal policy. The U.S. happens to have all three. Private investors are comfortable investing in a country like the U.S.
Michael Woolfolk
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