Home Forex Dollar, Aussie Steady as Canadian Dollar Gains Ahead of Fed Decision

Dollar, Aussie Steady as Canadian Dollar Gains Ahead of Fed Decision

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The dollar and Aussie were steady on Wednesday as the Canadian dollar gained ahead of the Federal Reserve’s monetary policy decision.

The Federal Reserve is expected to raise rates at the conclusion of its meeting later today. The central bank will also deliver its updated economic forecasts.

Markets will be looking for signals on the inflation outlook and the number of rate hikes projected for 2017.

Higher interest rates benefit the dollar by making it more attractive to yield-seeking investors.

The euro was virtually unchanged against the dollar at 1.0631. The pound held at 1.2647 against the greenback.

The U.K. Office for National Statistics announced on Wednesday that the unemployment rate was unchanged at 4.8%, an 11-year low, in the three months ended October. The figure was in line with expectations.

The number of unemployment claims rose by 2,400 last months, lower than the expected 5,500 claimants projected. The number of claimants rose by 13,300 the previous month.

The average earnings index increased by 2.5% in the three months ended October, beating forecasts of a 2.3% gain.

Against the yen, the greenback was little changed at 115.19.

Meanwhile, the Australian dollar was steady against its U.S. counterpart, trading at 0.7496. The kiwi advanced 0.21% to 0.7219.

The U.S. dollar index was down 0.19% to 100.90 early morning.

The Canadian dollar touched a seven-week high against the greenback, as oil prices continue to rise.

USD/CAD slipped 0.14% to 1.3110.

The oil-linked currency continues to benefit from news of an agreement between major oil producers to cut production and curb the oversupply.

Oil inventories across the globe may start to draw in the early part of 2017 if producers follow through with the agreement to cut back on production, according to the International Energy Agency.

Higher oil prices typically boost the Canadian dollar.

 

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Stephanie Caudle
Stephanie Caudle is a mother, wife, author, AIDS advocate and Web Marketing Consultant. She seeks to inspire, encourage and motivate young women. A former ambassador for Source Hip Hop Magazine and the iconic brand (RED) Stephanie continues to hold true to her entertainment roots as the Managing Editor of her own site "She’s My Superwoman", a website dedicated to showcasing women in health, fitness, fashion, politics, entertainment and business who have overcome great obstacles in order to become the women they are today.

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