Resistance 3: C $ 1.2945 (Jul 11-12
Resistance 2: C $ 1.2835 / 60 (Jul 7 low, MA (200) H1)
Resistance 1: C $ 1.2770 (Jul 13 high)
The Fed's interest rate decision was highly expected this week. The U.S. dollar was supported by the Fed's interest rate hike. The Fed on Wednesday raised its interest rate to the range 0.25% - 0.50% from 0.00% - 0.25% as widely expected by analysts. All Federal Open Market Committee (FOMC) members voted for the interest rate hike. The Fed repeated that further interest rate hikes will be gradual.
The uncertainty about the interest rate hike by the Fed this year remained. Yesterday's minutes of the latest Fed's meeting did not produce any clarity on the Fed's monetary policy. The Fed said that it wanted to have more time to see if the slowdown in the global economy will have a negative effect on the U.S. economy. FOMC members noted that the U.S. labour market continued to improve, while the inflation remained at low levels.
It seems that market participants switch off their brain when it comes to raising interest rates by the Fed. The recently released U.S. economic showed almost no signs of sufficient recovery of the U.S. economy. A slight rise in U.S. core consumer price inflation was enough to support the U.S. dollar, although this week released U.S. economic data was mixed. It is possible that the movement was driven by profit-taking before the long weekend.
|remaining time till the new event being published|
- US nonfarm payrolls rise more than expected in July
- Canada’s merchandise trade deficit widens in June
- Canada unemployment rate falls to lowest level since October 2008
- Canada Ivey PMI falls less than expected in July