Canadian Dollar Advances Amid Rising Risk Appetite
August 26 2018 - 10:35PM
RTTF2
The Canadian dollar climbed against its most major counterparts
in the Asian session on Monday amid rising risk appetite, as Asian
shares rose following positive close on Wall Street Friday after
Federal Reserve Chairman Jerome Powell said that the strength of
the U.S. economic expansion justified gradual interest rate
hikes.
At the Jackson Hole Symposium in Wyoming, Powell said, "As the
most recent FOMC statement indicates, if the strong growth in
income and jobs continues, further gradual increases in the target
range for the federal funds rate will likely be appropriate."
The People's Bank of China announced that it was changing its
methodology for fixing the yuan's daily midpoint in order to keep
the currency market stable.
The central bank said it was resuming use of a "counter-cyclical
factor" for fixing the yuan's daily mid-point, which would help the
currency remain stable.
The loonie climbed to a 4-day high of 1.3007 against the
greenback, compared to 1.3025 hit late New York Friday. On the
upside, 1.28 is likely seen as the next resistance level for the
loonie.
The loonie edged up to 1.5108 against the euro, from a low of
1.5159 hit at 7:45 pm ET. The loonie is likely to challenge
resistance around the 1.50 level.
Reversing from an early low of 0.9555 against the aussie, the
loonie rose to 0.9522. The next likely resistance for the loonie is
seen around the 0.93 level.
Meanwhile, after advancing to near a 3-week high of 85.58
against the yen at 8:15 pm ET, the loonie dropped to 85.20 and held
steady thereafter. The loonie is poised to find support around the
84.00 level.
Looking ahead, German Ifo business climate index for August is
due in the European session.
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