USD/CAD Loonie Stable After Dovish FOMC Statement

By Unknown

Rabu, 03 Agustus 2016

USD/CAD Loonie Stable After Dovish FOMC Statement

The Federal Reserve releases its statement after the Federal Open Market Committee (FOMC) of the January meeting in Washington. While the market had anticipated there was no change in the target range for the federal funds rate to 0.25-0.50 percent. As there was no press conference scheduled for after the publication of the statement, the document would be the main focus.

The Fed continues to highlight the improvement in the labor market even as the economy faces tougher forecasts growth, but the rest of the economic indicators had a downgrade. Household spending and business fixed investment has obtained a "moderate" from a solid early in December. The Fed has expanded its previous comments sweet net exports and included the slowdown in inventory investment. The rest of the statement follows a similar trend. Keep the main points from the end of 2015 and the addition of a more accommodating perspective for indicators.

USD / CAD gained 0.21 percent over the past 24 hours. The pair has been range bound between 1.4140 and 1.4040 trading on the lower level before the FOMC and return to above 1.41 after the publication of the statement.

The Federal Reserve unlike major central banks that had their interest rate announcement earlier in January as the European Central Bank (ECB), the Bank of England (BoE) and the Bank of Canada (BoC ) do not have a verbal intervention press conference, it was never an option. The statement did include adding the central bank "monitors the global economic and financial developments and assess their implications", but again are not part of the job already?

Oil had a positive day West Texas and Brent gained 1.97 percent and 3.61 percent, respectively, after the possibility of an agreement by OPEC and Russia is still on the table hypothetical.

rebound oil does put some downward pressure on the USD against the CAD, but in the end the market had already taken into account the lack of action Fed with the March FOMC next candidate for the first rate increase in 2016

next for CAD traders is most of the time the US data and US and Canadian crude product data inside Friday. Oil prices will remain a key driver of USD / CAD price as more details emerge about the state of American Societies for shale and Saudi comments on the IPO Aramco, but with no side (OPEC OPEC or not) willing to compromise on a reduced production, which adds to the uncertainty that the outlook for energy demand is lower worldwide

CAD events to watch this week :.

Thursday, January 28
4:30 am GBP Prelim GDP q / q
8:30 USD Durable Goods Orders m / m
8:30 USD unemployment claims
provisional monetary policy Statement JPY
Friday, January 29
0:00 JPY BOJ outlook Report
Attempting JPY BOJ Press Conference
8:30 CAD GDP m / m
8:30 USD Advance GDP q / q

* All times EST
For complete list of events planned in the foreign exchange market check the economic calendar MarketPulse

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