U.S. Dollar Continues to Ease

The dollar nursed modest losses against the yen and euro early on Thursday, but suffered bigger falls versus commodity currencies led by the Canadian dollar.  The loonie jumped to three-month highs of C$1.2280 per USD after the Bank of Canada surprised markets yet again, this time by indicating no further easings are imminent. In January, the BOC stunned investors with a cut.

Other commodity currencies also firmed with the Australian dollar briefly touching 77 U.S. cents, pulling away from this week’s low of $0.7553. It last stood at $0.7676.  In contrast, the euro remained stuck in familiar territory after the European Central Bank policy meeting turned out to be a non-event for investors.

Not so for President Mario Draghi who was showered with confetti by a protestor as she leapt onto a desk in front of the startled central banker during a post-meeting news conference.  The conference resumed after the brief interruption. Draghi pledged to roll out its money-printing program ‘firmly’ and also granted continued backing for Greece, saying there was no need to limit emergency funding for its banks.