US Dollar Holds Gain in Quiet Markets | Canadian Dollar Range Bound Before BOC
Published January 20, 2020
The US dollar started the week on a firm note as recent economic numbers pointed to strength across the US economy, reducing the likelihood of interest rate cuts. Today, the market is expected to trade in a range as US banks will be closed in observance of Martin Luther King day. The greenback was trading at 97.695 at the time of writing.
The Canadian dollar is expected to remain volatile against the greenback this week, as the market will be closely eyeing the Bank of Canada Monetary Policy Report, due on Wednesday. Positive December employment numbers from statistics Canada have helped convince markets that the BoC will continue to keep its key interest rate on hold at 1.75 percent. At the time of writing, the Canadian dollar is trading at 1.3060 levels against the US dollar.
The latest update of the International Monetary Fund was released this Monday, showing its 2020 global economic growth forecast was trimmed to 3.3 percent from 3.4 percent estimated previously in October. The report, however, contains a sense of modest hope, noting that risks are “less skewed” toward negative outcomes.