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January

US Dollar remains the weakest currency this week

Published: Thursday 10 January 2019

  • 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.
Jokes

What do you call a group of disorganized cats?
A cat-astrophe.

What did the triangle say to the circle?
You're pointless.

What did the axe murderer say to the judge?
It was an axe-ident.

Today's Major Economic Releases

Market BST Data/Event Previous Expected
EUR 12:30 European Central Bank Monetary Policy Meeting Accounts    
CAD 13:30 Canada: Building Permits -0.2% -0.5%
CAD 13:30 Canada: Unemployment Claims 231k 226k
CAD 13:30 Canada: National Housing Price Index 0.0% 0.0%
USD 17:45 Federal Reserve Chair Powell Speaks    

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