The Canadian Dollar round-trips as Fed officials differ on hike timing
Tuesday‘s two Canadian catalysts, a flat July for the economy and a later start to Bank of Canada (BoC) bond buying, didn’t move USD/CAD. The pair went above 1.4200 for the first time since early July and fell back twice. The second drop began when New York Fed President Williams, a permanent voter on rates, said there‘s no rush to hike again. The BoC’s news came from a conference stage in Manhattan, and the Fed speech that moved the Loonie was given in Buffalo, a short drive from Ontario. No urgency still means one more hike this year US job openings fell to 7.079 million in August against a 7.23 million forecast, and USD/CAD recovered the dip before Fed Governor Barr spoke. The pair made its second run at the session high after Governor Barr said in Detroit that high energy prices and artificial intelligence investment mean more hikes are likely needed. President Williams said one more hike may be appropriate late this year and that the September 16 move to 3.75%-4.00% gives the Fed time to wait for data. Fed funds futures still price about a 70% chance of an October hike, which leaves most of the case for a higher USD/CAD









