The Bank of Canada left interest rates unchanged but dropped its hawkish bias, leading USD/CAD to break out of its symmetrical triangle pattern, a development we hinted at in today’s Asian session.
The US dollar was once again the strongest major currency, with the Dollar Index breaking above the resistance level we highlighted yesterday. EUR/USD hit a 22-month low below 1.1175, hurt by weak German IFO figures.
Even USD/JPY nudged higher, despite a headwind from bond yields ahead of tonight’s BOJ meeting.
The aussie was the weakest major currency after a big miss in quarterly CPI data.