USD/CAD - Canadian Dollar Extends Gains The Canadian dollar is plumbing the depths of three-year lows in early New York trading. Commodity prices continue to climb, leading to some analysts speculating about a commodity super-cycle. That is good news for the Canadian dollar as Canada’s economic growth is still heavily reliant on natural resource exports.
The Canadian dollar continues to grind higher due to expectations for a robust post-pandemic economic boom, fueled by massive fiscal and monetary stimulus from Canadian and U.S. governments, in a low-interest-rate environment.
U.S. Federal Reserve policymakers were out in force yesterday, unanimously pushing back against the notion that the Fed will need to raise interest rates if inflation rises. Fed Vice Chair Richard Clarida said they were still a long way from their goals and now was not the time to talk about tapering. Boston Fed President Eric Rosengren echoed Clarida’s remarks, saying they need to see
Euro at 1.20, Eurozone Retail Sales eyed
May 5, 2021SharePrint
The euro is showing little movement on Wednesday. In the North American session, EUR/USD is trading at 1.2005, down 0.06% on the day.
Services PMI show stagnation
Business activity across the eurozone remains weak, as reflected by eurozone Services PMIs for April, which were released earlier on Wednesday. The German, eurozone and French releases were all close to the 50.0 level, which separates contraction from expansion. This means that the services sectors in the eurozone are not showing growth, as the Covid-19 lockdowns and a sluggish vaccine rollout have taken a heavy toll on the services industry.