Upbeat ahead of BoC decision
Ang USD / CAD exchange rate jumped to a high of 1.3773, the highest point since November after the extremely hawkish statement by Jerome Powell. It has risen by more than 3.85% from its lowest level this year as focus shifts to the upcoming Bank of Canada (BoC) decision. The GBP/CAD and EUR/CAD have also rallied. Bank of Canada decision ahead Ang pinakamalaking forex balitaof the week was the start of Jerome Powells testimony to the Senate on Tuesday. In it, he reiterated that the Fed will be more hawkish than previously thought. He noted that the bank will likely deliver more rate hikes than expected in a bid to put inflation on check. Therefore, analysts believe that the Fed will hike interest rates by 0.50% in March followed by two or three more 0.25% rate hikes. This will be much higher than what most analysts were expecting. In the aftermath of the statement, American bond yields jumped while stocks plunged. The Dow Jones shed more than 500 points. The next important USD/CAD news will be the second day of Jerome Powells testimony. Unlike on the first day, the impact on the pair will be a bit limited. Ang Bank of Canada will also conclude