The Canadian dollar was able to recover against its forex peers when the Bank of Canada refrained from cutting interest rates. The central bank even issued a somewhat neutral statement, acknowledging that Q1 growth has been stronger than expected and that the risks to their inflation outlook are balanced.
USDCAD fell from the 1.3130 area to a low of 1.2981, CADJPY bounced from 84.00 to a high of 84.67, EURCAD is down to 1.4518, GBPCAD is down to the 1.9100 mark, and AUDCAD has broken below support at the .9400 major psychological level.
In other CAD-related news, crude oil popped up to the $50/barrel levels when the US Energy Information Administration reported a reduction of 4.2 million barrels in stockpiles, larger than the estimated draw of 1.7 million barrels.
Pound keeps gaining ground on Brexit updates
Growing support for the “stay” campaign appears to have been fueling the pound’s rallies so far this week, as opinion polls are indicating a slightly wider lead in favor of staying in the EU. Earlier in the week, the UK Treasury released a statement detailing the potential repercussions of a Brexit while Bank of England Governor Mark Carney also warned that it could result in an immediate shock to the UK economy.
GBPUSD broke past the 1.4650 minor psychological barrier and is testing 1.4500, GBPJPY turned upon hitting resistance at the 162.00 mark, EURGBP broke below the .7600 handle, and GBPNZD is testing the 2.1900 resistance.
For today, the UK second GDP estimate could take center stage, although no revisions to the initially reported 0.4% growth figure are expected. UK preliminary business investment data is also due today and a 3.2% rebound is eyed, likely to draw more support for the pound.
Australian dollar tanks on weak private capital expenditure
The Aussie suffered a fresh round of selling when the quarterly private capital expenditure report showed a massive 5.2% slump, worse than the estimated 3.2% contraction. AUDUSD hit a low of .7183, AUDJPY fell to a low of 78.48, AUDNZD dropped to 1.0663, and EURAUD spiked to the 1.5600 resistance.
Up ahead, traders could turn their attention to the release of the US durable goods orders report in the absence of other top-tier data. More market catalysts are lined up on Friday, with the US preliminary GDP reading and a speech by FOMC head Janet Yellen lined up.
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