Top Forex Brokers
- The Bank of Canada surprised markets yesterday by hiking its Overnight Rate by 0.25% to 4.75% when it was expected to leave rates unchanged. The Bank justified its move by saying that “underlying inflation remains unexpectedly high”. Markets are now firmly expecting that the US Federal Reserve will follow with a 0.25% rate hike next week. Markets reacted to the Canadian hike by selling off risky assets like stocks, while the Canadian Dollar strengthened, while yields rose. The Bank also used language in its Statement that left the door open for further hikes and said it would be continuing quantitative tightening.
- The Japanese Yen strengthened on stronger than expected GDP data.
- Global stock markets have turned more bearish following the Bank of Canada’s rate hike. The NASDAQ 100 Index led the US stock market lower yesterday, and US equity futures still look bearish this morning. Most stock markets globally have moved lower over recent hours.
- In the Forex market, the US Dollar is effectively trading choppily within its consolidation pattern, going nowhere. The market is generally going nowhere right now, except for movement in the Canadian Dollar. Trend traders will probably still be looking for long trades in the USD/JPY currency pair which recently reached a new 6-month high price.
- The Turkish Lira powered to another record low yesterday, after weakening ever since President Erdogan’s election victory started to look likely.
- The Cocoa ETF NIB rose strongly yesterday to another multi-year high, standing out in the commodities market.
- There will be a release today of US Unemployment Claims data.