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Breaking news

Federal Reserve Leaves Interest Rates Unchanged, Maintains Monthly Asset Purchases

Real Time News
  • Fed's Powell: - Strong capital requirements are a "must" for banks, especially the largest banks - Capital requirements allow banks to continue to perform during severe downturns
  • The July FOMC press conference is hammering home this point: the labor market mandate is now on equal footing with the inflation mandate (which is atypical); and Powell is now making the case that the labor mandate is *more important* to normalization than the inflation side. https://t.co/saAmTwpTRw
  • Fed's Powell: - Fed has not made a decision on when taper will commence - Variety of opinions with in the Committee on when tapering should begin
  • Fed's Powell: - Transitory means not impacting longer-run inflation patterns - We must be extremely careful when it comes to the inflation mandate
  • 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 https://t.co/KE2gP6Q1Xs https://t.co/DmMGL9byme
USD/CAD Bullish Engulfing Pattern Hints At A Bounce Near Range-Bottom

USD/CAD Bullish Engulfing Pattern Hints At A Bounce Near Range-Bottom

David de Ferranti, Currency Analyst

Talking Points

  • USD/CAD Technical Strategy: Sidelines Preferred
  • Range-bottom at 1.0900 remains critical support
  • Bullish Engulfing pattern hinting at a bounce

USD/CAD is facing a make-or-break moment in the hours as the pair tests a critical support level near 1.0900. While buyers appear to be keeping prices well-supported in early European trading, a bullish reversal signal has yet to emerge on the daily.

USD/CAD: Make or Break Moment Near Range-Bottom

USDCAD-Bullish-Engulfing-Pattern-Hints-At-A-Bounce-Near-Range-Bottom_body_Picture_2.png, USD/CAD Bullish Engulfing Pattern Hints At A Bounce Near Range-Bottom

Daily Chart - Created Using FXCM Marketscope 2.0

Drilling down to the four hour chart, a Bullish Engulfing signal suggests the potential for a test of former support-turned resistance at 1.0955 in the session ahead. A break higher would likely prompt a swift advance on the psychological 1.1000 mark.

USD/CAD: Bullish Engulfing Pattern Hints At A Bounce

USDCAD-Bullish-Engulfing-Pattern-Hints-At-A-Bounce-Near-Range-Bottom_body_Picture_1.png, USD/CAD Bullish Engulfing Pattern Hints At A Bounce Near Range-Bottom

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, FXCM

Follow David on Twitter: @Davidde

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

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