The statement indicates the central bank is putting a cap on its rate-hike cycle. There is a logical response for the Canadian dollar to weaken.
The statement indicates the central bank is putting a cap on its rate-hike cycle. There is a logical response for the Canadian dollar to weaken.
The ECB has signaled that if there was any risk inflation expectations would run away, they would contain them. With this central bank rate-hike cycle, it may lead to a flat yield curve by April.
A rate-hike response by the ECB would not have achieved much and would have been counter-productive in slowing European growth.
Historical relationships have shown that the Australian dollar should be trading around 85 cents to 90 cents, given the recent sharp rise in gold. It does provide the case for the Australian dollar to play some catch up, particularly if the Fed rate-hike momentum loses favor with investors.
The markets cast a bit of doubt about how much the central bank will go in this rate-hike cycle.
© 2020 Inspirational Stories
© 2020 Inspirational Stories