- Fed's Bullard argues against a 50 bps rate cut in July.
- FOMC Chairman Powell largely repeats last Wednesday's remarks.
- US Dollar Index recovers modestly, looks to snap 4-day losing streak.
The greenback gathered strength against its major rivals in the last hour after St. Louis Fed President Bullard's comments weakened the probability of a 50 basis points rate cut in July. Boosted by the greenback's rebound, the USD/CAD pair rose to a daily high of 1.3207 but failed to preserve its strength. As of writing, the pair was posting small daily gains at 1.3183.
During an interview with Bloomberg TV, Bullard said a 50 basis points rate cut in July would be overdone. "I don't think the situation really calls for that, but I would be willing to go 25," Bullard added. According to the CME Group's FedWatch Tool, markets are now pricing a 35% probability of a 50 bps rate cut compared to 43% seen on Monday. The US Dollar Index, which reached a daily peak of 96.36 following the knee-jerk reaction, was last up 0.15% on the day at 96.15.
Meanwhile, FOMC Chairman Powell in his prepared remarks today pretty much repeated his opening statement that he delivered last Wednesday during the FOMC press conference.
On the other hand, today's data from Canada showed that wholesale sales increased by 1.7% on a monthly basis in April to surpass the market expectation of 0.2% by a wide margin to help the loonie stay relatively resilient. Moreover, the barrel of West Texas Intermediate is clinging to its daily gains near the $58 mark, providing additional support to the commodity-related CAD.
Technical levels to watch for
|Today last price||1.3182|
|Today Daily Change||0.0002|
|Today Daily Change %||0.02|
|Today daily open||1.318|
|Previous Daily High||1.3218|
|Previous Daily Low||1.3178|
|Previous Weekly High||1.3434|
|Previous Weekly Low||1.3151|
|Previous Monthly High||1.3566|
|Previous Monthly Low||1.3357|
|Daily Fibonacci 38.2%||1.3193|
|Daily Fibonacci 61.8%||1.3202|
|Daily Pivot Point S1||1.3166|
|Daily Pivot Point S2||1.3152|
|Daily Pivot Point S3||1.3126|
|Daily Pivot Point R1||1.3206|
|Daily Pivot Point R2||1.3232|
|Daily Pivot Point R3||1.3247|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.