Mixed Market Moves: USD Marginally Stronger Amid Global Rate Changes
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.3800-1.3900
Euro 1.4900-1.5000
Sterling 1.7650-1.7750
WTI Oil (opening level) $77.80
The US Dollar index is marginally stronger this morning but that is after it fell back after the Fed announcement yesterday. As expected the Federal Reserve did not cut interest rates yesterday but did set the table for a rate cut in September as it stated that inflation looks like it continues to fall and if that is the case then they will look at an interest rate cut.
In other Central Bank news the Japanese Yen continues to strengthen in response to the BOJ increasing interest rates and just a short time ago Sterling had a big drop as the Bank of England cut interest rates by 0.25%, GBP.USD fell almost a 100 points after the announcement before staging a small rally.
The Canadian Dollar was able to pick up some gains ysterday on the Fed announcement but as we have seen in the past it could not hold onto that strength and the USD.CAD pair moved back above the 1.3800 (0.7247) level before settling down. The Loonie was able to pick up some strength against both the Euro and Pound but that again was weakness in those currencies and not any strength in the Loonie.
Markets will now get set for the US July Employment report tomorrow and the report is expected to show a continual decline in job creation which will help the Fed move towards the interest rate cut in September. Markets will also await the response from Iran to the attack on the Hamas leader, the Canadian government is warning Canadians to leave Lebanon as they cannot guarantee they can help them leave if war breaks out.
Stocks had a strong day yesterday and are poised for another positive opening so the US Dollar should stay fairly neutral for the day while the market awaits the employment report.
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.2650-1.2750
Euro 1.5350-1.5450
Sterling 1.7500-1.7600
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.2875-1.2975
Euro 1.3400-1.3500
Sterling 1.5600-1.5700
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.2675-1.2775
Euro 1.4350-1.4450
Sterling 1.7200-1.7300