Halo Financial Team
Halo Financial
Today's Highlights
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Canadian Dollar weak after Bank of Canada rate decision
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UK retail sales monitor lower than expectations
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Fed Chairman scheduled to speak later
Current Market Overview
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.
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Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.