Forex
USD/CAD Gains as FOMC Decision Triggers Dollar Selling
The Canadian dollar has managed to eke out a gain as investors react to yesterday's FOMC decision and Fed Chair Warsh's press conference. The US dollar is trading defensively against the majors after the Federal Reserve held interest rates at 3.50-3.75%. Three regional presidents dissented in favour of a 25bp hike, indicating some uncertainty among policymakers.
Despite renewed fighting in the Middle East and President Trump's decision to impose additional US tariffs on Canada, oil markets remain relatively stable. WTI crude has fallen 1.16% since yesterday and is trading at USD 83.50 per barrel in New York.