NEWS / Foreign Exchange

Stay tuned for the Fed funds target rate decision at 2:15 today

People's Bank of China again lowered USD/CNY mid rate which is now hitting new lows. CNY/HKD hit new highs and talks of HKMA lowering the current USD/HKD peg continue.

EUR/USD traded to new highs last night pushing through any anticipated resistance and showing that a move higher is not unlikely. GBP/USD also broke through a 26-year high before falling back slightly. AUD is trading higher as a result of impressive building approvals which provides a compelling reason for the RBA to hike rates next week.

USD/CAD continues to trend lower which, according to Canadian Financial Minister, Jim Flaherty, can be attributed to the weakening USD and speculative sentiment toward CAD rather than anything specifically fundamental.

Stay tuned for the Fed funds target rate decision at 2:15 today. The market consensus remains that we will see the Fed rates cut by 25bps.