The Canadian Dollar rose significantly overnight, appreciating 0.93% to hit 0.7606 against its US counterpart. The Loonie, benefitted primarily through the FOMC’s dovish statement, which saw the Greenback fall significantly overnight.
There wasn’t too much news on the economic calendar for the Canadian Dollar to digest with direction being driven from south of the border. Tellingly, the US Federal Reserve released a markedly more dovish statement that previous meetings, omitting language suggesting a “balanced” view on the economic outlook, only to be replaced with uncertainty. The Federal Reserve now seems committed to the “wait and see” approach, undermining US expected rate hike guidance for the rest of 2019. The Canadian Dollar enjoyed the fallout from the weakening Greenback and took the opportunity to advance handsomely by nearly 1%.
Moving into Thursday, the Canadian Dollar is again set to enjoy a quiet day on the economic calendar with direction to be driven by off-shore forces.