There were no surprises in the market on Tuesday trading yesterday as investors remained watching the continuation of the strengthening of the king of currencies, the US dollar.
Still guided by the expectation of a less aggressive interest rate cut from the Federal Reserve (Fed), investors examine the statements made by Fed members who are seen as continuing to support the movement of the US dollar on its track.
The US dollar hit a more than 2-month high as it continued its strengthening streak for the fourth week in a row.
Looking at the indicators for the currency, the dollar index (DXY) continued to rise to 104.00 points, the highest level since the beginning of last August, while the 10-year Treasury yield of the United States (US) remained hovering above 4.20%.
There is still no indication of a change in direction for the US dollar while investors will be cautious ahead of the release of PMI data on Thursday.
For today (Wednesday), US home sales data will be watched, but the main focus is seen to be directed at the results of the Canadian central bank policy meeting.
After lowering interest rates by 25 basis points for 3 consecutive meetings before, the Bank of Canada (BOC) is expected to implement a more aggressive rate cut of 50 basis points at the latest meeting, to 3.75% from 4.25%.
This follows the latest declining Canadian inflation readings published last week, and will have a negative impact on the Canadian dollar.
Other major currencies in the market are seen to be moving slowly with only the US dollar driving them for now.
Among others that are the focus of the market today are the events of the BRICS conference for the second day, and the IMF for the third day.
