While the Federal Reserve’s announcement basically came in as expected, rates on hold, it wasn’t until after that at the news conference that Jerome Powell acknowledging better financial market conditions and his view that the low inflation data was “transitory”, which indicates that the FED is in no hurry to cut rates. The USD rallied on these comments.
The Canadian dollar has also reacted to the drop in oil, which has fallen 4% this morning, yesterday’s growing inventory numbers and higher Russian production offset any chances of a potential squeeze.
Currently Close Range
USDCAD 1.3474 1.3446 1.3431-1.3477
EURCAD 1.5070 1.5053 1.5031-1.5081
GBPCAD 1.7564 1.7549 1.7507-1.7582
US: Jobless Claims wk4/27 230K 230K
Factory orders March -0.3% 1.9%
Productivity & Costs Q1
Nonfarm productivity Q/Q 1.3% 3.6%
Unit Labour costs Q/Q 2.5% -0.9%