The Japanese yen traded in a much tighter range during the beginning of the week, following on from the gains it made last week from the Crimean crisis, due to its status as a safe haven currency.
Many of the emerging market currencies also traded in a tighter range this week as they patiently awaited the Federal Open Market Committee (FOMC) meeting in the US and watched out for any further escalation in Ukraine which might spur ‘risk off’ movements.
On Wednesday we saw significant movements for the Canadian dollar. Bank of Canada Governor Stephen Poloz said he couldn’t rule out an interest rate cut if the economy worsens, as it would be required to help the economy to grow.
Today there are a number of events worth of note. We will see inflation and retail sales data from Canada, which will be of interest to investors, especially in wake of Mr Poloz’s statement on Wednesday. Investors expect this data to be worse than previously issued, and any surprises may cause the Canadian dollar to strengthen or weaken considerably. There will also be an interest rate decision in Mexico, while in both Japan and South Africa it will be bank holidays.
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