Daily Commentary & Market Insights, Sep.18, 2019

Today’s FED interest rate announcement at 2PM EST is widely expected to be another 25 basis point cut. The chances of a cut today to a target FED interest rate of 1.75% – 2%, are now set at a 68.1% probability. Canadian inflation data this morning missed expectations with CAD trending lower after the release. We look to crude oil inventories at 10:30 AM for more insight into the Canadian dollar’s next move before the FED announcement. The FED has already taken measures to inject over 74B dollars into the market by buying back securities in order to lower short term borrowing rates for the first time in over a decade. Chairman Powell will be prompted to comment on these actions and if these types of cash infusions will be needed to calm markets by providing further stimulus. We look to 1.3016 – Jul 19 low as support with resistance pegged to 1.3383 – Sep 3 high.