USD Falls After Fed Announcement


The CAD has made gains of about a cent overnight and into the North American open from the lows seen yesterday. News is absent again which will leave most market participant’s focus on tomorrow’s GDP numbers.
 
The USD is under broad pressure but for the most part seems to be handling it well. After a post-Fed announcement spike the USD has fallen slightly against most G10 currencies. The FOMC statement was as expected highlighting better domestic data and the diminishing global risks. They did not make any clearer the chance for a September rate hike, but the verbiage definitely puts it on the table.
 
The EUR traded up earlier this morning on what seems to be a market short-covering rally. Even with sharp gains seen yesterday there seems to be little steam behind a strong EUR rally. Significant headwinds lie ahead for a significant rebound and many analysts are still bearish.
 
Equities are mostly down this morning: the S&P down 0.20%, NASDAQ up 0.04%, the Dow down 0.40% and the TSX down 0.06%. Crude Oil is down 1.29% this morning ($41.38) while Gold is also down 0.59% ($1,336.51).
 
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