The spoken words of the leaders of the central banks of Canada and the U.S. on Wednesday are likely to impact the value of the Canadian dollar, according to published reports.
Bloomberg reports the loonie climbed from its seven-day low against the U.S. dollar as Ben Bernanke with the U.S. Federal Reserve is slated to address reporters following the Wednesday adjournment of the policy-making arm's two-day meetings. Conjecture is swirling as to the road ahead for the economy-spurring monetary stimulus plan.
With "tapering still on the agenda, then you're likely to see follow-through in U.S. dollar strength, so by contrast you should see a weaker Canadian dollar," chief macro strategist David Tulk with Toronto-Dominion Bank's TD Securities unit in Toronto told Bloomberg on Wednesday.
For the first time in about a year, wholesale sales climbed for four consecutive months in April in Canada.
Stephen Poloz, the new governor of the Bank of Canada, is slated to speak on Wednesday as well, The Canadian Press reports. The title of his speech is: "Recovery: Rebuilding Business Confidence in Canada." His predecessor, Mark Carney, is preparing to lead the Bank of England.
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