Daily Commentary & Market Insights, Sep.19, 2019

Good morning,

Yesterday’s FED meeting resulted in a .25% rate cut as expected. The market reaction was largely muted as the second US rate cut in over ten years had been largely priced in ahead of the announcement. USD/CAD continues to be rangebound as the Canadian dollar’s close correlation to oil remains relatively intact.  Tension in the Middle East and continued US sanctions on Iran saw WTI spike to a new four month high of over 63 dollars per barrel before consolidating back to the 58 handle for next month’s delivery. US initial and continuing jobless claims reported at less than expected levels, providing further support for the US dollar. Canadian data for the rest of the week is limited to tomorrow’s retail sales figures for the month of July. No major breaches in overall medium term support and resistance levels have caused USDCAD to break below 1.3016 – Jul 19 low, and  1.3383 – Sep 3 high as resistance.