USD/CAD extends the bounce to 1.2040

FXStreet (Edinburgh) - After bottoming out in the 1.1940 area, USD/CAD is now regaining the vicinity of 1.2050 after the FOMC decision.

USD/CAD trims losses

Spot has almost fully recovered the daily pullback to multi-week troughs below 1.1950, propped up by a resurgence of the buying interest around the US dollar after the FOMC meeting.

The Committee left unchanged the benchmark rates, broadly in line with market expectations. It has also argued that consumer prices should pick up pace towards the 2% target in the medium term, while the economy should return to a moderate pace of expansion after the winter slowdown. Members gave no clues about the timing of the first rate hike by the Fed.

USD/CAD significant levels

At the moment the pair is down 0.08% at 1.2022 with the next support at 1.1945 (low Apr.29) followed by 1.1940 (low Jan.20) and then 1.1900 (psychological level). On the other hand, a break above 1.2116 (high Apr.28) would open the door to 1.2205 (high Apr.27) and finally 1.2269 (high Apr.23).

Treasury yields hardly react to FOMC statement

The yields on the short duration and long duration treasuries hardly reacted to the FOMC policy statement, which showed policymakers continue to see moderate growth and job gains despite slowdown in the first quarter.
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AUD/USD trims gains after Fed meeting

AUD/USD erased most of the day’s gains following the release of the Fed statement after the 2-day FOMC meeting.
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