Figure out the best performing G-10 currency in June

Figure out the best performing G-10 currency in June

It is not the euro or the pound, the Canadian dollar is the best performing currency in June amid rising bets the Bank of Canada will hike interest rates as soon as next month.

BOC rate hike odds edged up to 69 percent on Wednesday, up from 39 percent a day earlier as Governor Stephen Poloz reiterated the BOC may be considering higher borrowing cost.

The central bank adopted a tightening bias fortnight ago, with suggestions that stimulus coupled with two rate slashes in 2015 may need to be scaled back.

Poloz referred that the two rate cuts managed to absorb the oil price shock, while hinting that “rates are of course extraordinarily low.”

The USDCAD pair has slipped, so far, 3.52 percent this month, while the euro has gained 1.36 percent and the pound has augmented 0.73 percent. 

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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