Investors should bet the dollar will fall against its Canadian counterpart on expectations the Federal Reserve will introduce more stimulus, according to BNP Paribas SA.
The pound strengthened the most in more than a week against the euro after U.K. reports showed construction output slowed less in April than economists forecast and mortgage approvals unexpectedly rose in March.
The pound, the best-performing major currency in the past year, strengthened after the Bank of England said further gains are possible as Britain’s economy expands amid falling unemployment.
The dollar climbed to the highest in almost two months after a private-sector report showed U.S. manufacturing rose last month, adding to signals the world’s biggest economy is improving.
Dollar bulls weren’t wrong about the currency of the world’s largest economy -- just early.
The franc strengthened after the Swiss central bank stopped short of announcing a target rate or temporary peg to the euro in its third attempt in as many weeks to drive down the currency.
"Now the market's contemplating further cuts."
- Steven Saywell on Aug 28, 2014
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