US Dollar to Canadian Dollar Exchange Rate Rises Above 1.3800 Supported by Bank of Canada Policy and Expectations of Hawkish US Federal Reserve

The US Dollar to Canadian Dollar exchange rate has recently risen above 1.3800, a level not seen since April 2018. This is due to a combination of factors, including Bank of Canada policy and expectations of a hawkish US Federal Reserve.

The Bank of Canada (BoC) has been relatively dovish in recent months, with Governor Stephen Poloz indicating that the central bank will be patient in raising interest rates. This has caused the Canadian Dollar to weaken against the US Dollar, as investors have become less confident in the Canadian economy.

At the same time, the US Federal Reserve has been more hawkish in its policy stance. The Fed has raised interest rates four times since December 2017, and is expected to raise them again in 2019. This has caused the US Dollar to strengthen against the Canadian Dollar, as investors have become more confident in the US economy.

The combination of these two factors has caused the US Dollar to Canadian Dollar exchange rate to rise above 1.3800. This is a positive sign for the US economy, as a stronger US Dollar makes it easier for US companies to export goods and services to Canada. It is also a positive sign for the Canadian economy, as a weaker Canadian Dollar makes it easier for Canadian companies to import goods and services from the US.

Overall, the recent rise in the US Dollar to Canadian Dollar exchange rate is a positive sign for both economies. It is supported by Bank of Canada policy and expectations of a hawkish US Federal Reserve, and should provide some relief to businesses on both sides of the border.

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