- Canadian Dollar weak after Bank of Canada rate decision
- UK retail sales monitor lower than expectations
- Fed Chairman scheduled to speak later
By Killian Greenwood
The US Dollar remains weak after a wave of cautious comments from Fed officials, as well as yesterday evening’s Federal Open Market Committee minutes from the December 19th
meeting. The Fed could be “patient” before making another rate move. This is actually in line with market pricing that the Fed will not raise interest rates again this year. The deadlock over the US government shutdown is another factor weighing on the Dollar. President Donald Trump walked out of the talks with Democrat leaders of Congress yesterday and stated the meeting at the White House was a “waste of time”.
Canadian Dollar weak after Bank of Canada rate decision
Elsewhere, Canadian Dollar is the weakest so far today after yesterday’s Bank of Canada rate decision. They stood at 1.75% and lowered the 2019 growth and inflation forecasts adding that the decline in oil price has “material” impact on the economy.
UK retail sales monitor lower than expectations
Also in the UK, the British Retail Consortium retail sales monitor dropped -0.7% year on year in December versus expectation of -0.3%.
Fed Chairman scheduled to speak later
Looking ahead, US jobless claims, Canada new housing price index and building permits will be released this afternoon. Plus the Fed Chairman is scheduled to speak later this afternoon.