ForexLive North American wrap: Bank of Canada shifts hawkishly

  • BOC holds rates, says rate hike ‘may become appropriate’
  • Schaeuble says Spain does not need a bailout
  • ECB’s Ordonez says it’s reasonable to expect that Spanish reforms are enough
  • Italy to miss deficit targets
  • US March housing starts 654K vs 705K exp
  • US industrial production 0.0% vs +0.3% exp
  • Canadian Feb manufacturing sales -0.3% vs -0.3% exp
  • IMF raises global growth forecast to 3.5% from 3.3%
  • IMF calls for unconventional policies and rate cuts from ECB
  • Obama dreams up scheme to regulate oil markets
  • ECB’s Constancio: markets may be overreacting to Spain
  • Spain’s Rajoy says it’s a new episode of the credit crunch
  • Egan-Jones downgrades Spain
  • Spain reveals bank recapitalization plans
  • S&P 500 gains 1.5% to 1390
  • CAD leads, JPY lags

Another whippy day for EUR traders. Started at 1.3130 and then tried to make a break for 1.31 at the NY options cut (a time that has been volatile this week) but the down-move was reversed up to 1.3156, setting the range extremes for the session. Afterwards, it was a chop to 1.3127, almost exactly where the US session began.

USD/JPY made a choppy but steady climb higher to 80.90 from 80.65 as risk appetite and stocks made headway.

USD/CAD fell to 0.9864 from 0.9950 after the BOC decision, endangering the 0.9845 rangebottom. Later, USD recovered to 0.9900.

Gold crashed $20 to $1634 before jumping right back to $1650 in what looked like someone trying to unload a position.

Author: Adam Button

Adam Button is the editor of ForexLive™. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes deeply in the value of knowing every tidbit of news. He has a background in journalism and was formerly the head of the markets team at the Canadian Economic Press. He is a graduate of Ryerson University and completed Level 1 of the CFA program. Adam lives in Montreal, follow him on Twitter: @FX_Button.

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