Foreign-exchange markets are gradually returning to normal trading volumes. Yesterday, the greenback weakened somewhat against the other main currencies, particularly against the Canadian dollar, which was supported by firm crude oil prices (WTI).
Yesterday’s most closely followed news was the release of the Fed’s minutes for the December 14 meeting during which the U.S. central bank decided to raise its key rate by 0.25%. Although the risks of a strong USD and political uncertainty were mentioned, the risk of seeing inflation pick up speed due to a red-hot job market won out in the final decision. The Fed even said that it was prepared to raise rates more quickly than expected if the need arose.
As we approach the inauguration on January 20, more and more announcements regarding President-elect Trump’s team are coming in. Yesterday, we learned from his Vice-President-elect Mike Pence that short-term priorities would be tax and health insurance (Obamacare) reform.
- Range of the day: 1.3250 – 1.3390
Olivier Cosialls