Navigate Up
Sign In

US Fed stands pat causing USD to rally

Posted on: September 21, 2017

Yesterday it was all about the Fed, and they did not disappoint. They left December firmly on the table, with 12 of 16 members indicating they were in favor of a 3rd hike before the end of 2017 and keeping the dot plot at three hikes for 2018. They lowered the Fed funds target to 2.75% from 3%, about the only thing that could be considered dovish. As we mentioned yesterday, with the market expecting a dovish tilt to the statement and dot plot, by keeping it largely the same it was interpreted as hawkish and the USD rallied across the G10.

What does it mean for USDCAD? Well in the short term we could see a squeeze higher to the key resistance around 1.2440/60. With Canadian CPI and Retail Sales tomorrow and a relatively bare calendar today means there may be a reluctance to push higher today, but a disappointing CPI could certainly take us there tomorrow. Will Poloz continue to be able to explain away the missing inflation like the Fed has, acknowledging that strong growth is still possible with low inflation? He will certainly have that opportunity in his speech next Wednesday ahead of Canadian GDP on Friday as inflation is no longer the only game in town.

Elsewhere, overnight AUD took it on the chin as comments from the RBA reaffirming that higher rates around the world has no implications for Australia sparked a sell off. An outlier thanks to the dramatic shift by its counterparts over the past few months, the Bank of Japan left rates and guidance unchanged.

  • Yesterday's NA 1.2200 - 1.2390
  • Asia 1.2323 - 1.2355
  • London 1.2327 - 1.2368


Most Recent Market Updates

November 20, 2017

Natural gas gains 4.4 cents

NYMEX natural gas climbed 4.4 cents higher on Friday.

November 20, 2017

Crude gained $1.41

Crude prompt futures gained $1.41 on Friday to close the day at $56.55.

November 17, 2017

Natural gas falls 2.7 cents

NYMEX natural gas continued it’s decent on Thursday.

November 17, 2017

Crude prices slide $0.19

Crude prompt futures traded in a 69 cent range.

November 17, 2017

USDCAD range bound as Canadian CPI uneventful

Domestically we saw the biggest release of the week a few minutes ago.

November 14, 2017

Natural gas loses 5 cents

Cold weather emerged over the long weekend in the US Midwest to East as anticipated.


Talk to a specialist

GlassdooreSSENTIAL Accessibility™Diversity and Inclusion

About ATB | Contact Us | Find a Branch or ABM | Current Rates | Privacy and Security | Legal | Code of Conduct | Site Map | Vendor Resources

2017 ATB Financial. All rights reserved. ®ATB Financial is a trade name/registered trademark of Alberta Treasury Branches.

ATB Financial