MTFX Group Canadian Dealing Desk Telephone Number 1.800.832.5104

MTFX Group U.S. Dealing Desk Telephone Number 1.855.663.6839

Market News & Commentary

Home / FX Insights / FX Daily

A battered greenback looks for support in Yellen’s testimony before the Senate Banking Panel

LEAVE A COMMENT

The dollar was capped against a basket of currencies early on Thursday after crude oil inventories dropped to a low -7564k verses market expectations at -2450k. In addition, the Federal Reserve chair Janet Yellen did not sound as hawkish as many had anticipated. The U.S. economy is healthy enough for the Fed to raise rates, though low inflation may leave the central bank with diminished leeway. Looking forward, tomorrow markets will await inflation, retail sales, and industrial production reports.

Canadian Dollar Comment:

The Canadian dollar stood near a 13-month high against the greenback ending the session near the 1.2750 level. The Bank of Canada (BoC) raised interest rates by 25 basis points for the first time in roughly seven years on Wednesday, saying the economy no longer needed as much stimulus. Looking forward, markets may attempt to stay hawkish as Canada releases its new housing price index today.

Euro Comment:

The euro dropped to an intraday low for yesterday’s session trading at a level of 1.14. The euro may have underperformed on Wednesday due to a number of European Central Bank (ECB) officials expressing caution about inflation and its role in the ECB’s policy normalization. The next move in the single-currency is more likely to be determined by the upcoming German inflation which will be released today.

Yen Comment:

The yen gained some ground on the dollar as it powered up by +0.20% by end of trading. The short-term strength of the yen will most likely be reversed as Bank of Japan (BoJ) policymakers remain dovish on the Japanese economy while other world nations have started to adopt a hawkish tone. Looking forward, outflows in the yen will continue to be the tale of the tape as markets adapt to a not-so-safe safe-haven currency.

Pound Comment:

The pound surged against the greenback reverting its early weekly losses, getting a boost from solid U.K. employment data. Meanwhile, the pound also found a fresh boost from hawkish comments from the Bank of England (BoE) MPC member McCafferty, who said overnight that he seeks rate hikes in August and an unwinding of quantitative easing. Markets now await data from the BoE Credit Conditions and Bank Liabilities survey to provide some key information on the economy.

MTFXLOGO_icon

Sources:

www.investing.com
www.scotiafx.com
www.dailyfx.com
www.theglobeandmail.com/globe-investor/markets/

Get Our Commentary

Live FX Rates

Currency
Bid
 
Ask
 
USD/CAD
-
 
-
 
EUR/USD
-
 
-
 
USD/JPY
-
 
-
 
GBP/USD
-
 
-
 
USD/CNY
-
 
-
 
Last Updated:
*Rates Disclaimer

Currency Converter

 
 
*Rates Disclaimer

Rate Watch Services

Alert Me Via:

Email

SMS

Callback

Click to Change image

Market Commentary

Keep me informed:

Daily

Weekly

Monthly

I would like to receive SMS Alerts:

Yes

No

Click to Change image

By completing this form, I give MTFX permission to contact me. I understand I can withdraw my consent at any time. For details, review our privacy policy.

Request Callback

Click to Change image

By completing this form, I give MTFX permission to contact me. I understand I can withdraw my consent at any time. For details, review our privacy policy.

 

FX Currency Forecasts

  2016
Currency Spot Q1 Q2 Q3 Q4
EUR/USD 1.0857 1.11 1.10 1.13 1.14
USD/JPY 113.9400 112 113 115 118
GBP/USD 1.3960 1.41 1.43 1.47 1.51
USD/CHF .9992 0.99 1.00 0.99 0.98
USD/CAD 1.3412 1.37 1.38 1.42 1.41
USD/MXN 17.8609 17.75 17.22 16.71 16.45
AUD/USD .7241 0.70 0.69 0.71 0.72
USD/CNH 6.5518 6.60 6.70 6.75 6.80
USD/PLN 3.9859 4.33 4.35 4.37 4.33
USD/INR 67.7124 68.0 68.5 66.0 65.0

  2017
Currency Spot Q1 Q2 Q3 Q4
EUR/USD 1.0857 1.11 1.10 1.13 1.14
USD/JPY 113.9400 112 113 115 118
GBP/USD 1.3960 1.41 1.43 1.47 1.51
USD/CHF .9992 0.99 1.00 0.99 0.98
USD/CAD 1.3412 1.37 1.38 1.42 1.41
USD/MXN 17.8609 17.75 17.22 16.71 16.45
AUD/USD .7241 0.70 0.69 0.71 0.72
USD/CNH 6.5518 6.60 6.70 6.75 6.80
USD/PLN 3.9859 4.33 4.35 4.37 4.33
USD/INR 67.7124 68.0 68.5 66.0 65.0
  2016 2017
Currency Spot Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
EUR/USD 1.0857 1.11 1.10 1.13 1.14 1.15 1.15 1.16 1.18
USD/JPY 113.9400 112 113 115 118 119 120 118 116
GBP/USD 1.3960 1.41 1.43 1.47 1.51 1.53 1.54 1.55 1.58
USD/CHF .9992 0.99 1.00 0.99 0.98 0.98 0.98 0.97 0.97
USD/CAD 1.3412 1.37 1.38 1.42 1.41 1.38 1.36 1.35 1.33
USD/MXN 17.8609 17.75 17.22 16.71 16.45 16.21 15.97 15.82 15.75
AUD/USD .7241 0.70 0.69 0.71 0.72 0.73 0.74 0.76 0.79
USD/CNH 6.5518 6.60 6.70 6.75 6.80 6.80 6.70 6.65 6.60
USD/PLN 3.9859 4.33 4.35 4.37 4.33 4.30 4.30 4.30 4.10
USD/INR 67.7124 68.0 68.5 66.0 65.0 64.5 64.0 63.5 63.0

Subscribe

SUBMIT

Market Commentary

Keep me informed:

Daily

Weekly

Monthly

I would like to receive SMS Alerts:

Yes

No

Click to Change image

By completing this form, I give MTFX permission to contact me. I understand I can withdraw my consent at any time. For details, review our privacy policy.

Get in touch