Aggressive monetary policy, combined with political risks, point to a weaker currency
“The stars have aligned for the dollar to weaken more,” said Shahab Jalinoos, global head of foreign exchange strategy at Credit Suisse. “The U.S. simply faces more risks than other major economies at this point.”
Since the U.S. rolled back some restraints on movement, economic data have rebounded but coronavirus infection numbers have also surged in many states. Last week the U.S. recorded its biggest one-day increase in cases since the start of the pandemic. Political risks have also risen for the dollar. Congress has until the end of the month to approve an extension to its emergency unemployment benefit programme. Jalinoos said a failure to extend it could inflict a “lot of pain” on the U.S. economy in the run-up to presidential elections in November.Article content continued
But last month, in a sign that markets were returning to a more even keel, four big central banks decided to scale back their use of the facility. Recent data showed central banks holding just US$153 billion of outstanding loans from the Fed, down from US$449 billion on May 27.Finally, analysts note that the U.S. currency also lost its yield advantage when the Fed cut rates in mid-March, slashing its policy rate by a full percentage point to a range of 0-0.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why Seth Jones could tip scales for Blue Jackets vs. Maple Leafs - Sportsnet.caIf the Blue Jackets are able to consistently penetrate the Leafs’ zone with dump-ins or controlled entries, they can make this matchup a lot closer than some may think, and Seth Jones will be a huge part of that strategy.
Read more »
10/3 podcast: Why Canada's recovery from pandemic recession depends on all of us
Read more »
Opinion: Why won't Trudeau demand more from Iran?Trudeau’s policy of engagement will not produce any wins for Canada when dealing with a regime that best responds to economic and diplomatic pressure
Read more »
Button explains why he would award the Lady Byng to MacKinnonTSN Director of Scouting Craig Button joins Glenn Schiiler to explain why he thinks Nathan MacKinnon deserves the Lady Byng Memorial Trophy, and detail how Bobby Ryan and Connor McDavid meet the criteria for the Bill Masterton Memorial Trophy.
Read more »
Why a closed border hasn't kept international flights out of CanadaInternational flight activity to and from Canada is slowly ramping up, even though nearly all non-Canadians remain unable to enter the country.
Read more »