As expected this afternoon the US Federal Reserve announced that they would keep US interest rates steady at 0.25% and continue to cut the stimulus package by $10B a month, this is the second such month of the cuts and the stimulus program is now down to $65B from a high of $85B
The Fed went on to say that the labor market is improving and interest rates will stay low until unemployment improves
The US dollar has reacted as much as we thought it would with
USD.CAD rising a little but overall the Dollar
reaction is fairly muted, it is not running away.
If USD.CAD does not break through the 1.1200 level on this
report we may see it pullback towards 1.1100
US Dollar seller s should leave their orders around the
1.1200 in case we get there, and US Dollar buyers should leave orders between
1.1150 and 1.1100
The next Fed meeting is scheduled for Early March.
Have a great evening
Mike
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