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The Omicron Virus Pose Big Threat to Interest Rate Increase, Canadian Dollar Gaining Across-Board

Last month, the Bank of Canada signaled that it could hike its interest rates as soon as April 2022. In its deliberation, due to high energy prices and supply chain bottlenecks, they speculated that inflation would stay above 4.8% target in the long-term next year and then ease to 2.1% in the fourth quarter of 2022.  In response to the hawkish statement, the Canadian Dollar gained higher at 0.4% against the US Dollar(greenback).

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US Federal Fund Rate; Inflation A Big Threat To The economy, Could Tapering Be Gradual?

Ahead of the Federal Oder Market Committee (FOMC) meeting on the monetary policy review today by 7 pm (GMT + 1), the US Dollar experienced a mixed performance but resolved and it’s gaining with acceleration to the upside.

Short-term interest rates are a paramount factor in currency valuation. This is highly correlated with the economic outlook because its changes can affect both inflation and recession.

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The European Refinancing Rate; Tapering High on the Agenda Amidst Fear of Inflation and The Delta Variant

The European Main Refinancing Rate is the interest rate banks pay when they borrow money from the European Central Bank (ECB) for one week. This operation provides a bulk of liquidity to the banking system. Short-term interest rates are the paramount factor in currency valuation as it is highly correlated with the economic outlook because its changes can impact both inflation and recession.

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The Australian Cash Rate; Recent lockdown a Huge Factor in Tapering Decision

The Cash Rate is the interest rate that the Reserve Bank of Australia (RBA) charges commercial banks for a loan. This operation provides a bulk of liquidity to the banking system. Short term interest rates are the paramount factor in currency valuation as it is highly correlated with the economic outlook because its changes can have an impact on both inflation and recession

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POTENTIAL IMPLICATION OF RETAIL SALES ON POUND STERLING

Retail is an economic indicator that tracks consumer demand for finished goods by measuring purchases of durable and non-durable goods over a defined period of time. It is the primary gauge of consumer spending; an accurate measure of retail sales is vital for gauging the economic health of the United Kingdom because consumer spending accounts for the majority of the overall economic activity. Data on retail sales is compiled once a month by the office for national statistics.

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POSSIBLE IMPACT OF RETAIL SALES ON THE GREENBACK

Retail sale is an economic indicator that tracks consumer demand for finished goods by measuring the purchases of durable and non-durable goods over a defined period of time. An accurate measure of retail sales is vital for gauging the economic health of the United States because consumer spending accounts for two-thirds of gross domestic product (GDP). Data on retail sales is compiled once a month by the U.S Bureau of the census.

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