News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Breaking news

Federal Reserve Leaves Interest Rates Unchanged, Maintains Monthly Asset Purchases

Real Time News
  • Fed's Powell: - Fear of COVID and unemployment benefits are keeping people from working - Such a high vacancy-to-unemployed ratio is rare
  • Fed's Powell: - We are not looking at raising rates, but instead asset purchases - Ideally you would not be raising rates before tapering
  • @CVecchioFX @RiskReversal @GuyAdami Gold is headed back to the bar for another bender #LowerForLonger
  • Fed's Powell: - Move in yields not pinned on one single factor - Technical factors, movements in real yields shifting bond market
  • Fed's Powell: - In the near-term, risks to inflation are tilted to the upside - If inflation continues to rise above the Committee's goal, Fed will use its tools to guide inflation lower
  • $USD bearish break, now at LOD next support 92.19-92.26
  • Gold and the US Dollar whipsawing in wake of the Fed statement and press conference hosted by Chair Powell. Statement said the economy has made progress toward its goals, but Powell just expounded on this by saying "we are still a ways away from *substantial* progress on jobs."
  • Fed's Powell: - We are not near a discussion on raising interest rates - Economic recovery remains extremely uneven
  • So, either the Fed announces Taper soon and markets will evaluate that through the risk lens or they will have to push it back because they are troubled by economic issues such as the covid risk they highlighted. Either way, serious dancing to keep risk appetite steady
  • Fed's Powell: - COVID waves have less and less of an economic impact as time goes on - We will monitor Delta variant closely
Canadian Dollar May Threaten Range On Stronger Employment

Canadian Dollar May Threaten Range On Stronger Employment

David Song, Strategist
Canadian_Dollar_May_Threaten_Range_On_Stronger_Employment_body_Picture_5.png, Canadian Dollar May Threaten Range On Stronger Employment

Fundamental Forecast for Gold: Neutral

The Canadian dollar ended the month higher against its U.S. counterpart amid the rebound in risk sentiment and the loonie may appreciate further in the week ahead as the economic docket is expected to encourage an improved outlook for the region. Indeed, the employment report highlights the biggest event risk for the following week, and the development may prop up the Canadian currency as the labor market is anticipated to add another 5K jobs in June.

As the economic recovery gradually gathers pace, there’s a growing argument for the Bank of Canada to lift the benchmark interest rate from 1.00%, and we may see Governor Mark Carney continue to talk up speculation for higher borrowing costs in order to combat the record rise in household indebtedness. However, we will believe that a potential rate hike would be a one-time deal as the sovereign debt crisis continues to drag on global growth, and it seems as though investors are seeing a case for more easing as the BoC aims to encourage a sustainable recovery. According to Credit Suisse overnight index swaps, market participants were calling for higher costs at the beginning of June, but are starting to price a rate cut for the next 12-months, and the shift in the interest rate outlook may gather pace over the near-term amid the slowdown in growth and inflation. In turn, we may see the central bank preserve its wait-and-see approach throughout 2012, and the USDCAD may face range-bound prices in July as market participants weigh the outlook for monetary policy.

As the USDCAD continues to find interim support around the 1.0160 figure, the pair looks poised for a short-term rebound in the coming days, and we may see the sideways price action get carried into July amid the uncertainties surrounding the fundamental outlook for Canada. However, we will be keeping a close eye on the relative strength index as the downward trend in the oscillator continues to take shape, and we may see the exchange rate fall back towards the 78.6% Fibonacci retracement from the 2007 low to the 2009 high around 1.0100-10 should the developments on tap for the following week fuel speculation for a BoC rate hike. - DS

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.