EncoreFX’s daily market updates are written by our experienced and professional dealing team.
Loonie Slides Further | China Cuts Growth Targets
Published March 5, 2019
extended its rally to its highest level since the last week of January at
1.3353. Dismal GDP report from Canada last Friday coupled with lower crude oil prices
still weighing the domestic pair. Markets will be closely watching the Bank of
Canada rate decision tomorrow to determine the pair’s next leg of a directional
China cut its
growth targets to a 30-year low between 6.0 percent to 6.5 percent for
2019 and announced a major tax cut, as the country faces pressure from a
persistent slowdown, as well as a worsening external environment marked by
rising trade tensions and a slowing global economy.
Reserve Bank of Boston President Eric Rosengren said he supports a patient
policy approach that could last for several meetings of the Fed’s interest-rate
setting committee. Rosengren further stated that he is not expecting a
recession any time soon and outlook on need for another rate hike depends on economy
of State Mike Pompeo said that the United States and China are on the cusp of a
deal to end their trade war, adding to positive signs about negotiations from
both sides of the Pacific.