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

Markets mixed ahead of Federal Open Market Committee announcement

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 ▼