The Canadian dollar got a double pulse of market events on Wednesday. Oil prices jumped after falling US crude inventories have been announced and the Organization of Petroleum Exporting Countries (OPEC) announced alongside Russia the date of their oil production in April gel. The USD got no support from the declaration of the United States Federal Reserve Federal Open Market Committee (FOMC). The remarks were status quo and were then driven home during the press conference of Fed Chairman Janet Yellen.
The dollar lost 1.8 percent versus the CAD over the past 24 hours. The pair hit daily highs at 1.34 at the beginning of the session and settled near their lows at 1.30 after the FOMC press conference. The CAD had a strong momentum ahead of the FOMC with the news of lower crude stocks in the United States and the freezing output meeting go ahead.
OPEC Russia set a date for the freezing summit
The Canadian dollar was dragged lower than the volatility of energy markets continues. Organization of Petroleum Exporting Countries (OPEC) member Iran is ready to freeze production of crude oil production, but not in January that Saudi Arabia and Russia discussed. Iranian production was halved international sanctions were lifted this year have taken their toll. Tehran's plan is to boost production to pre-sanction levels; about 4 million barrels per day from the current 2.8 million barrels. The nature not crude producers reference were laid off today with the announcement of the date for a meeting in April in Doha to discuss the details of the production of gel.
Patient Fed Clips USD Momentum
release of the FOMC statement and economic projections downward pressure on the US dollar. The dollar was lower in all areas compared majors. The statement from the Federal Reserve of the United States has been interpreted by the market as more accommodating than expected. Inflation expectations and business investment remains weak, with the only stand being a strong component of the job. The Fed had been optimistic in 4 signaling rate hikes in 2016 and now forecasts pegged closer have the expectations of 1 or 2 rate increases on the market. The dollar was unable to capitalize on the addition of the European Central Bank (ECB) of stimulus to its quantitative easing program that the Fed chose to stay patient and let the economy make a hike rather than a proactive movement.
Bank of Canada pending federal budget for the next steps
A proactive central bank in 2015, the Bank of Canada (BoC) was almost pushed to cut record low interest rates in 2016 than the year started with a terrible decline in stocks worldwide. The global demand for resources has hit the Canadian economy and reflected the weakness of the loonie. The BoC chose to hold in January and again in March, but has transferred the responsibility to lead the economy of the federal government with the Budget in March 22. There is some skepticism about the real effect of fiscal policy will be in a world that has grown addicted to monetary policy even if rates went negative.
Canada's economy could face a recovery, even without a strong fiscal stimulus should the recovery of the US economy continues and the price of oil continues to increase thanks to OPEC efforts and Russia, but hopefully with some slight increase in demand as well. All these factors are subject to market forces on the fate of the Canadian economy is too heavily dependent on them to succeed, with our without a solid budget policy
CAD events to watch this week :.
Thursday, March 17
8:30 CAD Wholesale Sales m / m
Friday, March 18
8:30 CAD Core CPI m / m
08:30 CAD Core retail sales m / m
8:30 CAD CPI m / m
8:30 am CAD retail sales m / m
* All times EST
for a complete list of scheduled events in the forex market check the economic calendar MarketPulse
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