Just a week after the Federal Reserve took part in a coordinated rate cut by lowering its benchmark lending rate 50 basis points to 1.50 percent, the markets are still forecasting another aggressive cut for the policy board’s next meeting on October 29th.
Despite all of the issues facing the US economy, we’ve seen that the US dollar continues to gain on safe haven flows, similar to what we see with gold and US Treasuries.
The USD and Yen (especially) remain strong. The Yen looks likely to continue its trend while signals regarding the US dollar are mixed.
Heavy selling pressures during October pushed the AUDCAD to a low of 0.7152 on 10/8, and increased volatility for the aussie-loonie may offer profitable opportunities for forex traders.