Summary:
- Investor uncertainty.
- Canadian Dollar
Read next: EUR/USD Falls Below Parity, Eurozone Energy Crisis Concerns Persist (EUR/GBP), Hawkish BoC (USD/CAD), USD/JPY
The Dow 30 closed almost 0.5% down
The Dow Jones Industrial Average (DJIA) closed almost 0.5% lower at the time of market closing on Thursday. The fall in the Dow comes in the wake of investor uncertainty as recession and earnings discussions from major banks continue whilst still reeling from the release of US inflation data that shocked the markets and prospects of a 100 basis point interest rate hike from the Federal Reserve.
DJIA Price Chart
Canadian Dollar
On Wednesday the Bank of Canada (BoC) shocked the financial markets with their largest cash rate hike since 1998 of 1%. The hawkish move from the BoC has offered the Canadian Dollar support and has thrown a curveball at investors, leaving a range of responses from analysts. The current cash rate are at their highest level since October 2008, the move had outdone the Federal Reserve in its methods of bringing down local inflation. BoC raised its cash rate 100 bps from 1.5% to 2.5%.
Sources: finance.yahoo.com, fxmag.com, poundsterlinglive.com
