Dollar bounce on hold

Yesterday’s pull back in risk assets reminded investors that there remain considerable headwinds that threaten stability in the financial markets and often those headwinds are unforeseen. Political instability emerged in Spain and Poland to compound the worries over Greece who continues its negotiations in Brussels today with its creditors and this remains one of the major market risks facing investors, as was shown in the euro sell off yesterday. The dollar had a strong rebound on the back of slightly better than expected durable goods and consumer confidence data, but that rebound has been short lived as it gives back some of its gains overnight. The Federal Reserve’s Vice-Chairman Stanley Fischer in a speech yesterday said how global growth prospects are now a key focus for the Fed when it comes to their rate setting policy, which echos some of the recent FOMC statements and minutes which have mentioned concerns over slowing growth in China. This once again highlights how the slowdown in Asia and beyond is just another reason for forecasters to push back their expectations for the first Fed rate hike.

Today is quiet on the economic data front but the Canadian dollar will be in focus as the BOC makes its latest interest rate decision where it is expected to keep rates on hold at 0.75%. The CAD has weakened in the last couple of weeks and it is unlikely to be there actions that will move the markets following the surprise cut in January, but rather the statement that follows.

Share: Analysis feed

FxPro UK Limited is authorised and regulated by the Financial Services Authority, registration number 509956. CFDs are leveraged products that incur a high level of risk and it is possible to lose all your capital invested. Please ensure that you understand the risks involved and seek independent advice if necessary.

Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. FxPro does not take into account your personal investment objectives or financial situation. FxPro makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any employee of FxPro, a third party or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of FxPro. This communication must not be reproduced or further distributed without the prior permission of FxPro. Risk Warning: CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all your invested capital. Therefore, CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, please ensure you understand the risks involved and take into account your level of experience. Seek independent advice if necessary. FxPro Financial Services Ltd is authorised and regulated by the CySEC (licence no. 078/07) and FxPro UK Limited is authorised and regulated by the Financial Services Authority, Number 509956.