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All Eyes On BoC Rate Decision

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USD

On Wednesday, the Greenback settled high vs. its major peers as the Single currency paused after having rallied to a more than three year highs overnight amid growing anticipations that the ECB could scale back stimulus during the year. On the economic calendar, traders are awaiting the U.S. MBA Mortgage Applications and Bank of Canada Rate Decision, which is expected to hit 1.25% from 1.00%. Also on the political front, market players were also focusing on the risk of a potential U.S. government shutdown next Saturday.

  • The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up by 0.18% at 90.39.

EUR

The Common currency fell by 0.29% vs. the Greenback, to settle at $1.2226 after touching a three-year high on ECB talk. Jens Weidmann Germany's representative of the ECB's policymaking body said on Tuesday "It would be "appropriate" for the European Central Bank to stop its bond purchases, due to run at least until September.

GBP

The Sterling pound rose slightly by 0.01%, to settle at $1.3795.

CAD

Canada's central bank is widely expected to hike interest rates by 25 basis points and take the benchmark borrowing cost to 1.25%. against the CAD, the USD rose by 0.14%, to settle at $1.2452.

Gold

Early on Wednesday, Gold prices fell slightly, backing off its strongest level in around 4-month as the Greenback settled high vs. a basket of major currencies. Gold Futures - Feb 18 (GCG8), fell slightly by 0.04%, to settle at $1,336.50

Oil

Earlier today, Oil prices fell slightly, as oil likely to see a downward correction over, but remained well supported on the back of tightening supply and strong global demand. Crude Oil WTI Futures - Feb 18 (CLG8) fell as much as 0.17% as $ 63.62 and Brent Oil Futures - Mar 18 (LCOH8) was down by 0.38% at $68.89.

The most important economic events:

  • USD MBA Mortgage Applications (JAN 12): (GMT 12:00) – Medium- Forecast (N/A) – Previous (8.3%).
  • CAD Bank of Canada Rate Decision (JAN 17): (GMT 12:00) – Important- Forecast (1.25%) – Previous (100%). 

Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

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