Loonie Dropped to a One Month Low as Greenback Rallies
The CAD had plunged to a new low due to the hawkish effects of the FOMC minutes released on Wednesday. The USD on the other hand, is rallying. Yet, not all hope is lost and there can be some movement in the Loonie area as Statistics Canada releases reports on retail sales and consumer prices. The reason for this decline is the bearish movement in oil and gold prices.
The FOMC members were quite optimistic about the U.S economy and might consider a June rate hike by the U.S Federal Reserve, in case of economy showing signs of improvement and resilience throughout the 2nd quarter.
Oil prices are due to experience a slight decline as rain forecast is expected in the Canadian Oil province which may keep raging wildfires at bay, causing a possible stop in Oil's skyrocketing incline and recuperate normal production levels.
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