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Market Update

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

USD/CAD Down After Lack of Details from FOMC Statement

Published February 2, 2017
  • USD/CAD is down this morning as the market continues to react to the FOMC statement released yesterday; as expected, the FOMC decided to leave interest rates unchanged at 0.50 – 0.75%
  • The FOMC released a statement showing they had upgraded their assessment of the economy, asserting that “measures of consumer and business sentiment have improved of late”
  • USD suffered after the FOMC provided little information on the timing of further rate hikes, however, the FOMC did repeat its anticipation of raising interest rates gradually
  • US Initial Jobless Claims showed a better than expected number (246,000 actual vs. 251,000 expected) but failed to assist significant recovery for the USD; preliminary Nonfarm Productivity and Unit Labor Costs data also offered lackluster results
  • The British pound suffered losses this morning as the Bank of England, as expected, kept left rates unchanged; however, Consumer Price Index forecasts were left unrevised despite the recent OPEC oil rally

Chart (1) US Jobless Claims from January 2016 – Present