EncoreFX’s daily market updates are written by our experienced and professional dealing team.
USD Stabilizes After Post-Fed Plummet; BoC Poloz Speaks Today
Published December 14, 2017
USD fell yesterday after the Federal Reserve announced its third rate hike of 2017. The Fed communicated that it plans to increase rates 3 times in 2018, and that GDP forecasts have been revised up. The markets, however, seemed most focused on the Fed expectations for inflation to remain below the 2% FOMC target, pushing USD down almost 1% yesterday afternoon. The greenback has since stabilized.
Bank of Canada Governor Poloz speaks at 12:40PM EST today about the 3 things that keep him up at night. Unemployment and slack in the labour market, NAFTA, and household debt levels are all likely candidates.
In the UK, the Bank of England voted unanimously to keep rates on hold, perhaps as a function of ongoing concerns about Brexit.
The European Central Bank also left rates unchanged this morning, though the ECB did raise its GDP and inflation forecasts for 2018.
Oil prices are down this morning after the International Energy Agency warned the continued rise in US shale production was showing no signs of slowing down in 2018 and was offsetting and upsetting other producers who are cutting production. WTI crude is down 0.76% to $56.17 with Brent crude down 0.45% to $62.16 at the time of writing.