The U.S. Dollar is trading in weaker ranges against its G10 peers this morning but is slowly rebounding from deeper lows seen overnight following the Federal Reserve’s meeting
As expected, voting members chose to keep interest rates untouched and the press conference gave very little in terms of future policy decisions. Two members voted for a 25-basis-point cut, a number which could grow once there is a change in leadership.
As far as economic questions, Powell addressed items such as home purchases and inflation with a more “dovish” tone than was expected, but to be fair, the Chairman seemed a bit thrown off and had to remind reporters to stick to only monetary-policy related questions. Media members kept asking about his statement regarding the Department of Justice subpoenas handed earlier in the month and even someone pressured him on the U.S. Dollar trajectory and concerns, which he had to waive off as an appropriate inquiry for the Treasury Department.
Tomorrow, we get Non-Farm productivity for Q3 along with November Factory Orders as well as Durable Goods Orders. Currently, the Buck is not acting as a safe haven, losing ground to alternatives and metals which keep rising in price. Oil prices surged a bit with Brent Crude reaching $70.0/barrel for the first time since September as the White House is looking to work a nuclear deal with Iran to avoid military strikes on the country.
What to Watch This Week…
- Factory Orders & Durable Goods Orders Friday 10AM
- Monex USA Online is always open
CAD ⇑
The Canadian Dollars is one of the G10’s biggest gainers against the Buck this morning following the Bank of Canada’s decision to hold interest rates steady at 2.25% yesterday. CAD is gaining in lock step with Oil this morning, which saw WTI climb nearly 2.4% on the back of comments from President Trump warning Iran to make a nuclear deal or face military intervention.
