img CDN
img AUS
img NZ
Call us now: 1.844.363.7297
imgOnline Dealing Login

Market Update

EncoreFX’s daily market updates are written by our experienced and professional dealing team.

USD Continues to Strengthen; Market Awaits Bank of Canada Decision

Published March 1, 2017
  • USD/CAD gained more than a cent yesterday after hawkish comments from the Federal Reserve and high anticipation of President Trump’s address to Congress fueled US dollar strength
  • New York Fed President William Dudley said the case for tightening monetary policy “has become a lot more compelling” while comments from San Francisco Fed President John Williams indicated there is strong potential for an interest rate hike in March
  • President Trump offered an optimistic reiteration of his campaign promises during his first presidential address to Congress last night; investors were disappointed yet again from a lack of specific details on infrastructure and tax policies
  • President Trump did hint at a trillion dollar pledge for US infrastructure and tax relief for the middle class, however, topics primarily focused on immigration, healthcare and American unity
  • Oil has recovered from sharp losses seen throughout trading yesterday; a reported 94% compliance in the OPEC deal was offset by increased US production and US crude stockpiles
  • The Bank of Canada will release its rate statement and overnight rate at 10:00 AM EST today; rates will likely stay at .50%, however, investors will look to comments from BoC Governor Stephen Poloz on the bank’s view of the Canadian economy
  • The statement is likely to echo the “wait and see” sentiments of the BoC’s December and January decisions; any further dovish language has the potential to weaken the Canadian dollar