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USD Strengthens Ahead of Fed Meeting; Oil Continues to Fall

Published March 14, 2017
  • USD/CAD strengthened this morning off of lower oil prices, positive US inflation data and the start of the Federal Reserve’s two-day policy meeting; the Fed is widely expected to raise the target range by a quarter point to between 0.75%-1%
  • The Federal Reserve will also release its latest forecasts for economic growth and interest rates; investors will look to this release as well as Janet Yellen’s post-meeting press conference for clues on the pace of future rate hikes
  • Oil prices remain under pressure this morning as investors look to stockpile data from the American Petroleum Institute later today; OPEC will also release a monthly report later today while the International Energy Agency is set to release a report on global supply and demand tomorrow
  • Kuwaiti Oil Minister Essam al-Marzouq offered comments supporting an extension of the OPEC cut beyond June 30; Saudi Arabia, who has already cut more than pledged in the OPEC deal, is yet to make a clear stance on whether it supports an extension
  • GBP fell this morning after UK Prime Minister Theresa May was given a clearer path towards the EU exit process
  • British parliament passed legislation on Monday allowing the government to start the two-year negotiation with the European Union; May’s spokesman hinted that the bill will be sent to the Queen for symbolic approval at the end of the month
  • The Brexit process has become more complicated as Scottish First Minister Nicola Sturgeon demanded a new independence referendum to be held in late 2018 or early 2019