The US dollar was under pressure during the week prior to the July 26 Federal Open Market Committee meeting because most market participants did not expect the Fed to give any fresh new insight. They got that part right. The FOMC left interest rates unchanged, hinted at September for the start of balance sheet normalization, and very modestly downgraded the
Read moreThe Canadian dollar continues to combine the gains achieved since the Bank of Canada raised interest rates. Expectations of further rate increases in the coming months as well as a steep rise in oil prices have fueled the Canadian dollar’s rapid rise. Lately, added gains have been hard to come by. Traders are looking for either a new reason
Read moreThe Canadian dollar is hovering just above major support, in part, because of a resurgence in oil prices. West Texas Intermediate (WTI) has climbed from a low of $45.37/barrel on Monday to $46.97 today and that move has helped to cap USDCAD gains. The Canadian dollar is also receiving help from fading US rate increase expectations amid rising Canadian rates.
Read moreThe Canadian dollar managed to hang on to most of last week’s gains in quiet trading, overnight. USDCAD is being weighed down by the latest IMF forecast that lowered US growth estimates while raising Canada’s forecast. The Canadian dollar got another boost form a rebound in oil prices during the European session. There is only minor Canadian data on tap
Read moreIt’s steady as she goes for the bank of Japan. The central bank left its monetary policy unchanged, which was widely expected. They also cut their inflation forecasts for this fiscal year and the next one. It seems that the 2% inflation target moves a step or two backwards at every meeting. However, they were a tad more upbeat on
Read moreThe European Central Bank policy meeting is Thursday. As market moving events go, it is the only game in town. EURUSD has been on a steady stroll upwards as traders anticipate (hope) that President Mario Draghi will give clues to the ECB’s exit strategy, from its quantitative easing program. Most bank analysts do not expect any change in the forward
Read moreThe US dollar is ill. Another healthcare bill failure. Another US dollar plunge. Asia traders were unimpressed when they learned that the Republicans were unable to secure enough votes within their own party to repeal Obamacare. Traders concluded that President Trump’s aggressive tax cut plan would meet a similar fate. Without the stimulus from that initiative, the Fed would have
Read moreThe US dollar opened in New York with very little change compared to Friday’s close. The week started off slow helped by Marine Day holiday’s in Japan. Better than expected China GDP and Retail Sales data underpinned the commodity bloc currencies but despite the upside surprises, it wasn’t enough to ignite a fresh rally. AUDUSD bounced within a 0.7804-34 range.
Read moreThe USD dollar was under pressure throughout the Asia session. Fed Chair Janet Yellen’s testimony to Congress was considered to be doveish due to her comment about the Committee adjusting their assessments and the appropriate path to federal funds on changes to their economic outlook. The fact that the Fed would revise forecast as more data becomes available is a
Read moreThe Bank of Canada announced a change in policy direction in a speech by Deputy Governor Carolyn Wilkins on June 12. Since then, economists and analysts have been revising their Canadian interest rate outlooks. The Bank of Canada is almost universally expected to announce a 0.25 percent rise in its overnight rate this morning at 10:00 am (EDT). That won’t
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