Michael Woolfolk Bank Quotations

If the Bank of Canadian continues to hike rates after the Federal Reserve pauses, it will narrow the rate differential between the two. This will make the Canadian dollar more favorable.

We see that elevated oil prices and a continued Asian central bank intervention ensures that foreign demand for U.S. treasuries remains strong during January.

The United States is very dependent on Asian bank buying and petrodollars.

The Bank of Japan is not going to be changing its monetary policy before the fiscal year end on March 31. As corporations close down their books, they don't want any pronounced movements in the dollar-yen rate.

This morning's announcement by the Bank of Japan to end quantitative easing is being viewed as an indication that the Japanese economy is returning to health, but appears insufficient to prompt any consistent yen buying as of yet.

There was yen strength on the anticipation the Bank of Japan could be changing its monetary policy. Those expectations have been curbed.