- December 13, 2017
- Posted by: Joey Benedid
- Category: Market News
Extremely quiet overnight sessions with all G7 pairs trading within tight ranges ahead of today’s US PI data at 8:30AM EST followed by the much anticipated FOMC rate decision oat 2PM EST. As previously mentioned, the Fed hiking rates is as much of a sure thing as you can get in today’s markets so focus will be on the inflation data for future hikes which are also currently priced well into the 90% probabilities for the new year. Volatility could be the word of the day regardless of the outcomes as many may be adding to or toning down long term positions after the data and/or the FOMC announcement.
USD/CAD will be dragged along by the nose in today’s trading as broader themes will definitely take the reins. It is worthwhile to take note that Western Canada Crude dropped 15% in trading yesterday which will surely impact Canada’s oil patch employment and the Canadian dollar if no bounce occurs. Other information that is good to be aware of is the extremely large 1.3000 option expires coming due on Dec 20; 2.4 billion to be precise, according to December IMM contract information. This is likely to have us gravitate towards that level if we are anywhere close leading up to December 20th.