EURUSD is more flexible than the cautious ECB
The FOMC spillovers are still a major threat to the euro. The reality is that inflation is yet to fall and the Fed’s hawkish stance is only a confirmation. Although policymakers have indicated that they might be higher than initially thought, the true turning point would be a peak of rate expectations. ECB President Lagarde’s comments cautioned that they could not copy the Fed’s aggressive policy due to more vulnerable economic conditions across the bloc. A falling exchange rate would only increase inflationary pressure, to add salt to the wound. 0.9540 It is a great support system. 1.0150 The pair could be capped at the maximum advance.
USDCAD falls over Canada’s strong job market
Canadian dollar recovers from lower-than expected unemployment rate. The Bank of Canada had previously moved to a lower rate policy gear, increasing the difference with its US counterpart after it stressed its determination to remain on track. The tide will not change if the fundamentals do not change. The loonie could be held back by weak interest in more risky assets. The commodity-linked currency may find a little support in oil prices’ resilience, a sign of the market’s…