The Canadian dollar was hovering about its top value in 10 weeks against the U.S. dollar on Wednesday after the monetary unit's strong performance on Tuesday was driven by conjecture that the central banks of the U.S. and Europe are preparing to intervene in their respective economies, according to published reports.
The policy making arm of the U.S. Federal Reserve is slated to release a statement later on Wednesday and the European Central Bank set to convene on Thursday, Reuters reports.
"All eyes are on the FOMC, though our view is that any further easing is far more likely at the September meeting, when we will see the new Summary of Economic Projections and a press conference by Chairman Bernanke," according to UBS as cited by The Australian Dollar. "In the interim, the Fed will have two additional months of employment data to peruse, and the Jackson Hole conference at the end of August will provide Bernanke with a timely opportunity to prepare the market for any easing decision."
The ECB meeting is drawing particular focus since President Mario Draghi late last month said he endorses the euro and will preserve its strength.
Bloomberg reports the loonie touched its top value against the U.S. dollar since late May on Tuesday.
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