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Market Focus is on the Federal Reserve's Rate Decision Today

CAD - Canadian Dollar

The Canadian dollar is in a holding pattern today after reaching the psychological support level of 1.3400 yesterday amid a poor GDP reading at 0.1% versus the previous month print of 0.3%. The loonie strength remains in tacked after BOC Governor Poloz testimony to the Parliamentary Finance Committee yesterday where he reiterated the Canadian economy would perform better in the second quarter as an accommodating policy is the bank’s current mandate. Crude oil prices lost ground overnight as market participants take profit ahead of the EIA Crude Oil Stockpile report out at 10:30 am today, WTI Crude trades 0.6% lower from yesterdays close at 63.35 DPB.

Key Movers

Today the Federal Open Market Committee made up of voting, and non-voting members from the Federal Reserve will announce its rate decision and give forward policy guidance in a statement released at 2 pm. A press conference will follow the policy mantra which is expected to remain unchanged. Market participants will be tuned in to the Chair Jerome Powel's press conference as he will inevitably be asked to respond to President Trump's called for the Fed to cut rates by a full percentage point and resume quantitative easing. Trump hailed China's economic stimulus stance and low borrowing costs as helping China and said if the Federal Reserve were to do the same the US economy would soar "like a rocket." China and US trade negotiations will resume next week after talks in China ended today. Treasury Secretary Steven Mnuchin went on Twitter and tweeted, that he and Lighthizer just concluded a productive round on negotiations and he looks forward to talks continuing in Washington next week.

Expected Ranges

USD/CAD: 1.3370 - 1.3415 ▼

EUR/CAD: 1.5000 - 1.5069 ▲

GBP/CAD: 1.7437 - 1.7529 ▲

AUD/CAD: 0.9418 - 0.9453 ▼

CAD/NZD: 1.1194 - 1.1230 ▼

EUR/USD: 1.1213 - 1.1239 ▲