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Canadian Dollar Surges to 2-Month Highs on Bank of Canada Comments
Published June 13, 2017
The Canadian dollar surged to fresh two-month highs against USD today on the back of hawkish remarks by the Governor of the Bank of Canada, Stephen Poloz
He mentioned that the economy appears to be gathering momentum and that "…the interest rate cuts we put in place in 2015 have largely done their work"
The Federal Reserve kicks off its two-day policy meeting today, with the US central bank widely expected to raise interest rates by a quarter point to a range of 1.0%-1.25%
The focus will be on the tone of the announcement and hints on the pace of further tightening and the prospective rate path going forward
The British pound pushed higher vs. USD today after data showed that UK inflation resumed its upward march last month, accelerating more than forecast to the fastest pace in four years
Political drama in the UK continued to unfold as Prime Minister Theresa May survived a showdown with rank-and-file lawmakers and sought to prop up her minority government
Oil prices rose for the third-straight session in early trading today but have since pulled back; the markets continue to weigh ongoing efforts by major producers to cut output and reduce a global glut against a relentless increase in US drilling activity
Global stock markets were mostly higher in early trading today; a global selloff that started in the sector last week showed signs of abating, though North American markets are currently down on the day