EncoreFX’s daily market updates are written by our experienced and professional dealing team.
Greenback Inches Higher; Fed Chair Decision Looming
Published October 19, 2017
The greenback inched higher versus the loonie this morning after some upbeat economic reports out of the US and as declining oil prices dented demand for the commodity-related Canadian currency. Initial jobless claims fell 18,000 more than expected last week. A separate report showed that manufacturing activity in the Philadelphia region unexpectedly rose in October.
US President Donald Trump and Federal Reserve Chair Janet Yellen are scheduled to have an interview later today. The interview will likely be Trump’s last before his decision over who will continue at the helm of the US central bank. Trump’s decision is being seen as a likely driver for the dollar crosses in the near-term.
After Catalan President Carles Puigdemont missed an early morning deadline today to clarify to the Spanish government whether he had declared the region’s independence, Spanish President Mariano Rajoy plans to invoke Article 155 of the Spanish Constitution. This would strip Catalonia of its autonomy and establish direct rule over the region.
Market watchers will have a more exciting day tomorrow as far as significant economic releases go. Canadian CPI and Core Retail Sales to be released at 8:30am EST tomorrow, and existing home sales out of the US will be released at 10am EST. Federal Reserve Chair Janet Yellen is scheduled to deliver a speech titled “Monetary Policy Since the Financial Crisis” at the Herbert Stein Memorial Lecture, in Washington DC at 7:30pm EST tomorrow.