was little changed against the U.S. dollar on Wednesday as investors awaited minutes from the latest Federal Reserve policy meeting and domestic data added to signs that higher borrowing costs are weighing on the housing market.
The Canadian dollar was trading nearly unchanged at 1.3531 to the greenback, or 73.90 U.S. cents, after touching its weakest since Jan. 6 at 1.3460. The currency has been pressured in recent days by a decline in risk appetite as investors worried that the Fed would raise interest rates to a higher level than previously thought to slow the economy and cool inflation.Meanwhile, investors expect thewill pause its aggressive interest rate hiking campaign next month after data on Tuesday showed Canada’s annual inflation rate easing more than expected in January to 5.9 per cent.
Canadian new home prices fell 0.2 per cent in January from December, data from Statistics Canada showed on Wednesday, while the annual rate of increase slowed to 2.7 per cent. It was 11.8 per cent in January last year. The price of oil, one of Canada’s major exports, fell as the prospect of higher U.S. interest rates stoked concerns about fuel demand. U.S. crude prices were down nearly 1 per cent at $75.63 a barrel.The 10-year eased 2.3 basis points to 3.418 per cent after touching on Tuesday its highest intraday level in more than three months at 3.447 per cent.Your Globe
I don’t really think of monetary policy too much, but I also believe that the budget will balance itself
Keep cranking that interest rate up. Inflation is still ludicrously high.