US dollar stars at the Fed after party
- USD/CAD above 1.3000 for the first time in a month, sets new post-pandemic high.
- Loonie loses 2.0% on the week, 4.0% since June 8.
- WTI collapses 8.1% on US inventory build, recession fears.
- FXStreet Forecast Poll reflects technical vulnerability above 1.3000.
The USD/CAD traded to a new 19-month high at 1.3078 high on Friday as accelerated Federal Reserve rate increases and recession fears prompted a general turn to the US dollar, and an 8% collapse in crude oil undermined the loonie
Federal Reserve governors voted for the first 75 basis point hike in 28 years on Wednesday and Chair Jerome Powell suggested that more could follow as the central bank ramps up its inflation fight.
In its annual report on monetary policy, released on Friday prior to next week’s report to Congress, the Fed repeated its intention to control inflation. “The Committee’s commitment to restoring price stability —…
