Canadian Dollar Update September 19, 2019 – Canadian Dollar trading sideways
USD/CAD Open: 1.3287-1.3288 Overnight Range: 1.3256-1.3307
Oil is at $58.51 and gold is at $1,509.40. US markets are higher today.
The short-term USD/CAD technicals are neutral-bearish. For today, USD resistance is at 1.3291. Support is at 1.3237.
The Canadian dollar traded sideways after drifting a tad lower following yesterday’s Federal Open Market Committee meeting. The Fed cut the overnight fed fund range. That move was fully reflected in prices, but the latest “dot-plot” forecast was a bit of a surprise. The “dots” indicated that policymakers didn’t foresee any further changes in US interest rates until the end of 2020.
That wasn’t what President Trump wanted to hear. He took to Twitter to express his outrage.
The US dollar rallied following the Fed news, but the rally wasn’t very aggressive and more the most part, it was short-lived. The greenback closed Wednesday with minor gains and opened today in Toronto with small losses.
The Australian dollar did not have a good session. Prices came under pressure after the Fed announcement and again in Asia when Australia employment data disappointed. The headline numbers were decent, showing a gain of 34,700 jobs, compared to the forecast for just 10,000. The devil was in the details. All the gains were part-time, and the unemployment rate rose to 5.3% from 5.2% in July.
The Bank of England policy meeting was today as well. They surprised no one and left interest rates unchanged at 0.75%, for the thirteenth consecutive month. They warned that the UK economy would suffer more from another Brexit delay, saying: ”The longer those uncertainties persist, particularly in an environment of weaker global growth, the more likely it is that demand growth will remain below potential, increasing excess supply. In such an eventuality, domestically generated inflationary pressures would be reduced.”
Today’s US economic data calendar includes Philadelphia Fed Manufacturing Index, Initial Jobless Claims and Existing Home Sales. The Canadian calendar is empty.
Today’s Suggested Range USD/CAD: 1.3240 – 1.3340
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