Home Daily Commentaries Markets mixed ahead of Federal Open Market Committee announcement

Markets mixed ahead of Federal Open Market Committee announcement

Wednesday 1 February, 2023

Daily Currency Update

The USD is mixed this morning ahead of a hotly anticipated interest rate announcement from the US Federal Reserve Bank. The announcement is scheduled for 2 PM EST with the current expectations, at 99.5%, being that the Fed raises rates by 25 basis points. Any volatility will come as a result of the accompanying press release and Press Conference with Fed Chair Powell. Markets in general are mixed as well, with commodities trading stronger while equities markets are down pre-open.

Key Movers

The Euro is relatively unchanged against the Greenback this morning, even after inflation the Euro zone showed signs of cooling. Headline inflation dropped from 9% to 8.5% in December while the core number held steady at 5.2%. The Canadian dollar is holding onto yesterday’s gains in the face of equities markets pointing towards a lower open as West Texas Intermediate (WTI) oil climbs back towards $80 a barrel. With no significant announcements set for today in Canada, the dollar could see large impacts from the Fed announcement this afternoon.

Expected Ranges

  • EUR/USD: 1.0840 - 1.0915 ▲
  • GBP/USD: 1.2291 - 1.2344 ▼
  • AUD/USD: 0.7022 - 0.7091 ▲
  • USD/CAD: 1.3293 - 1.3414 ▼