USD/CAD - Hawkish Tone from Wednesday's Fed

The Canadian dollar continues to trade softer today after the U.S. Federal Open Market Committee’s comments yesterday. The focus now turns to the Canadian Consumer Price Index numbers tomorrow. The market is looking for a 0.2% increase in headline inflation. The FOMC decision yesterday saw the Fed sticking to its message for a December rate hike and then a possible three more hikes in 2018. The market saw this as more hawkish than expected, which boosted the U.S. dollar yesterday after the announcement. However, the greenback looks to have lost momentum, as investors headed into the North American open today and traded mixed against its G10 counter parts.

Experts expect a range today of $1.2310 to $1.2392

There was no major event risk this morning out of Europe except when European Central Bank President Mario Draghi will be speaking in Frankfurt later this morning. He will also be speaking tomorrow in Dublin where he will have another opportunity to convey to market participants whether the ECB will taper or not. More fundamentals will release tomorrow including French gross domestic product and Purchasing Managers' Index data from Germany, France and the euro-zone. The euro is currently trading at $1.4716.

Commentators expect a range today of $1.4677 to $1.4768

U.K. Public Sector Net Borrowing in August fell below expectations of 6.4 billion and printed at 5.1 billion. This didn’t seem to affect the pound as the currency is still making ground. The final event risk for the week will occur tomorrow when Prime Minister Theresa May will speak in Italy regarding her government's Brexit vision. The sterling is currently trading at $1.6671.

Traders expect a range today of $1.6612 to $1.6723

The Australian dollar is trading lower today following comments from Reserve Bank of Australia Governor Philip Lowe, in which he hinted that the central bank is far from considering any monetary tightening at this point. Furthermore, China’s credit rating was downgraded by Standard and Poors, which pushed the Aussie lower. Combined with weaker sentiment in the commodity space, especially in iron ore and copper, the Aussie will be soft for today.

Oil (WTI): $50.30 U.S. per barrel

Gold: $1,290.59 U.S. per ounce

Silver: $16.90 U.S. per ounce

Copper: $2.941 U.S. per tonne

Dollar Index: 92.37

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