- Global FX markets trade quietly in dull overnight session
- Fed to cut, BoC to hold
- US dollar slips modestly and opens in NY mostly softer
USDCAD open: 1.3853, overnight range 1.3844-1.3859, close 1.3845, WTI 58.6, Gold 4193.82.
The Canadian dollar was directionless overnight, as markets stayed on the sidelines ahead of today’s Bank of Canada and Federal Reserve announcements. Traders are not expecting much drama from the BoC, which is widely viewed as keeping its policy rate unchanged while still warning that inflation risks skew to the upside.
WTI eased in a 58.09-58.65 band, weighed down by ongoing worries about a prolonged supply glut through mid 2026 and by expectations of a US rate cut.
Todays FOMC outcome looks all but predetermined, with markets fully pricing in a quarter point cut. The uncertainty lies in the updated rate projections, which many expect to lean hawkish and signal a slower path for any further easing. Reports suggest several policymakers are not convinced another trim is necessary, adding to the cautious tone.
In Asia, Japan’s Topix rose 0.12% the Hong Kong Hang Seng gained 0.42%, while Australia’s ASX 200 lost 0.08%.
As of 7:25 am, European bourses are in negative territory except for the UK FTSE 100 which is up 0.29%. The German DAX is down 0.45%, the French CAC-40 has lost 0.36% and S&P 500 futures are down 0.12%. The US Dollar Index (DXY) is 99.16, the U.S. 10-year Treasury yield is 4.208.%.
EURUSD traded in a 1.1622-1.1658 range as investors kept positions tight ahead of the FOMC. Markets found a modest sense of relief after France approved its social security budget, allowing Prime Minister Sebastien Lecornu’s government to avoid a collapse.
GBPUSD drifted in a 1.3296-1.3327 band, with traders opting to wait for the Fed decision and for remarks from Governor Andrew Bailey later in the session.
USDJPY traded between 156.56 and 156.94, with rising US Treasury yields reinforcing a bullish tone and overshadowing expectations that the BoJ may raise rates on December 19. The US 10-year yield edged up to 4.212% from 4.18% overnight.
AUDUSD traded in a 0.6629-0.6654 range as it held recent gains supported by firm Chinese data and the RBA’s hawkish pause earlier in the week. Traders are also bracing for Australia’s employment report, which is forecast to show a 20,000 increase in November.
