Daily Currency Update
CAD - Canadian DollarWith mitigated global financial conditions and slight economic improvements in the EU and China, coupled with US and Chinese trade talks progressing and US economic fundamentals performing well the FED is comfortable remaining patient on interest rates. As expected yesterday the Federal Reserve left the interest rate unchanged. Market participants soaked up all the verbiage Chair Powell had to offer on future guidance, the outlook the FOMC wants to get across is they are very comfortable just to leave well enough alone. Investors and their likes are viewing this as a more hawkish outlook from the Fed as no signals of interest rate cuts this year was eluded too. Powell was quoted, "We don't see a strong case for moving in either direction", the FOMC voted to hold rates at the current 2.25% to 2.50% range.
Key Movers
The next 2 days we have the opportunity to see how the US employment sector is performing. Unemployment claims today remained flat at 230k. This will be followed by monthly by average earnings, unemployment rate, and the non-farms payrolls tomorrow. US Payrolls are expected at 185k tomorrow and the unemployment rate is expected at 3.8%. Canadian job numbers are reported next Friday from Stats Can.
Expected Ranges
- USD/CAD: 1.3424 - 1.3474 ▲
- EUR/CAD: 1.5034 - 1.5080 ▼
- GBP/CAD: 1.7504 - 1.7582 ▼
- AUD/CAD: 0.9414 - 0.9451 ▼
- CAD/NZD: 1.1198 - 1.1224 ▲
- EUR/USD: 1.1176 - 1.1219 ▼