CAD Crumbles as Warsh's Hawkish Remarks Send Rate Hike Odds Soaring
The Canadian dollar suffered losses on Friday after Fed Chair Kevin Warsh delivered hawkish remarks at Jackson Hole. He reiterated his commitment to the Fed's 2.0% PCE inflation target and the FedWatch odds for a 25bps rate hike on September 16 rose from 36% to 62.9%. This shift in sentiment weighed heavily on the CAD, with USDCAD opening at 1.3891 overnight and trading within a range of 1.3889-1.3912.
The price of WTI crude oil also increased, rising from $80.32 on Friday to $86.65 in New York today after the US and Iran renewed hostilities. This jump in energy prices added further pressure on the Canadian dollar.
Meanwhile, Asian equities finished the session mixed, with Japan's Topix rising 0.23% and closing the month 3.85% higher. However, Australia's ASX 200 slipped 0.18%, while Hong Kong's Hang Seng was little changed.