How Bullish Should the Market be on High Inflation Numbers?
• Canadian Dollar Surges after the BoC Subtly Moves up Its Hawkish Time Table • Australian Dollar Rallies as the RBA Minutes Keeps the Focus on ‘Normalizing’ Rates Dollar Advances for a Fourth Day as the Market’s Taste for Risk Still Mixed A mixed day for underlying investor sentiment would ultimately urge the dollar to a moderate gain through Tuesday’s active session. While there were exceptions to the greenback’s advance (USDCAD was one of the more dramatic exemptions), the Dollar Index nevertheless advanced for a fourth consecutive day. For perspective, this is the most consistent, bullish trend for the single currency in two-and-a-half weeks. And yet, the dollar cannot be used as an objective benchmark for general risk appetite. The unit is already warped by its function as a safe haven while relative interest rate speculation has added a favorable facet under the right conditions. To garner a ‘less biased’ assessment of sentiment, we can look to other recently popular gauges for o
