Daily Commentary & Market Insights, Dec.12, 2019

Good morning,

Yesterday’s FOMC meeting and US interest rate announcement kept rates unchanged at 1.75% as expected. FED Chair Powell’s comments talked down the dollar citing more slack in the labour market even though the unemployment rate is only at 3.5%, a nearly 50 year jobless rate low. The FED’s dot plot revealed that most FED members favour holding rates unchanged through 2020. Another concern that Powell cited in the dovish announcement has been the challenge in getting inflation rate back up to the 2% target. The next economic docket to look out for will be tomorrow’s US retail sales figures. Today’s standard pivot points are looking to support at 1.3114 with resistance to 1.3270.