Fed Decision Day | Loonie Rebounds After Poloz Comments
Published May 1, 2019
The US central bank will be concluding its two-day meeting today and is expected to keep its benchmark interest rate unchanged, however, markets will be closely watching for comments from Fed Chairman Jerome Powell. Powell will hold a press conference at the conclusion of the event at 2:30 pm ET.
Bank of Canada Governor Stephen Poloz said on Tuesday that while the Canadian economy is currently facing some headwinds, there is good reason to believe the economy will accelerate in the second half of this year. Poloz reiterated that he felt an accommodative policy on interest rates was still warranted. The Canadian dollar reversed sharply and made a low of 1.3377 against the greenback following the announcement yesterday.
The latest round of US-China talks wrapped up in Beijing. The US Treasury Secretary Steven Mnuchin, together with the US trade representative ambassador Robert Lighthizer, concluded productive meetings with China Vice Premier Liu He. Discussions will continue in Washington next week.
The European Central Bank (ECB) vice president, Luis de Guindos, said that the ECB’s interest rates are likely to stay low for a long time and remain under levels seen in previous decades. He also mentioned that banks in the euro area should consolidate and step up efforts to improve profitability.