Will the BOC bring a challenge to the CAD traders?
The Bank of Canada (BOC) will release its rate statement alongside the monetary policy report during its meeting on January 22 at 17:00 MT time.
Greenback reaches one-month minimum in the face of trade clashes
On Monday, the evergreen buck dived further versus other currencies in Asia. The major American currency was suppressed by global worries of a full-blown trade conflict between the world’s two leading economies – China and America. Additionally, market participants are waiting for the American GDP figures.
Indicating greenback’s value versus a bunch of major currencies, the US dollar index was last seen at 88.98, declining 0.12%, reaching a one-month minimum.
The previous week, Donald Trump decided to have import tariffs imposed on about $60 billion of Chinese imports in an attempt to offset misappropriation of American intellectual property.
Meanwhile, the People’s Bank of China is set the fix rate of Yuan versus the evergreen buck at 6.3193 compared to yesterday’s 6.3272. The currency pair USD/CNY pair dived 0.04% coming up with 6.3120.
In response to the American anti-China duties, China is all geared up to imposing retaliatory duties on $3 billion of American imports. China intended to levy 15% duties on fruit, wine, steel pipes as well as other US products. The Asian country also considered adding 25% duties on recycled aluminum and pork. The strengthening tensions between the two countries are heavily affecting traders’ risk appetite.
The currency pair USD/JPY tacked on 0.20% offering a result of 104.95, having dived to a one-month minimum at 104.67 on Monday. On Monday, the currency pair dived to the 104 band having traded above the 106 mark the previous week.
The deepening of the fierce political scandal in Japan was also considered to be a catalyst to drive the Japanese yen.
The currency pair AUD/USD pair hit 0.7728, tacking on 0.38%. Additionally, Australia is waiting for its February’s HIA new home sales data as well as a speech from the country’s major bank’s Assistant Governor Kent. It should take place on Tuesday.
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Important events this week will bring us
This week will bring us central bank statements and important economic indicators related to the main currency pairs. Read on to see which ones will be affected.
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