USD/CAD Open 1.0207-12 Overnight Range 1.0201-1.0238
The USD/CAD rate did not stray far from yesterday’s Toronto close ahead of today’s FOMC rate decision and press conference. The new Bank of Canada governor, Stephen Poloz is also holding a press conference following his first ever speech as governor in Oakville today. His remarks should be closely scrutinized for any hints of a shift in policy even though they will be overshadowed by the FOMC.
As expected, ahead of the much ballyhooed FOMC meeting, FX trading overnight was rather subdued with low volumes. Asian equity indices were mixed-the Nikkei and ASX 200 rose around 1% while the Hang Seng dipped about the same. European equity indices were mostly flat and NY equity index futures are flat to slightly negative. Gold is $1,366.60 and WTI oil is $98.60
The short term USD/CAD technicals are neutral as the currency pair bounces erratically within a 1.0150-1.0250 band. Intraday, the USD/CAD is in a modest downtrend while trading below 1.0220 although support at both 1.0200 and 1.0180 is fairly close. The 1.0180-1.0240 trading band will likely remain intact until after the FOMC.
And in other news, the Mayor of Montreal has quit after being charged with Fraud against the government, Breach of Trust, Conspiracy and Municipal Corruption. Apparently, he was merely trying to pad his resume in order to qualify for a Canadian senate appointment.
Today’s Range 1.0180-1.0220