FX Daily Update
The National Bank of Canada | May 28, 2015 08:45AM ET
The Greenback Still On a Tear!
The loonie continued to fall yesterday, as the Bank of Canada kept its key rate unchanged. In its statement, the BoC mentioned that it would assess the impact of a rising loonie on the economy, and this shows that Governor Stephen Poloz wants to boost exports by reducing the value of our currency. Our central bank is expecting the economy to bounce back for the second portion of 2015 and stated that Canadian inflation is under control.
Optimism was back on North-American markets yesterday: the NASDAQ is fast approaching the historic high it recorded on March 10, 2000 while the S&P 500 and Dow Jones Industrial Average are respectively 35% and 28% above their 2007 highs. During the night, the Shanghai Composite plunged by 6.5% because of pressure from authorities to limit share purchases on margin.
This morning the U.S. dollar is still strong against major currencies, trading at its highest level in the past twelve years against the yen and having risen by 5% against the euro since May 18.
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