Morning Commentary & Currency Insights – June 13, 2018

The event of the day will be the FOMC rate decision at 2PM EST where a 0.25% hike is expected & fully priced into current levels.  What will be of greater interest is the press conference at 2:30PM EST following the release.  With global trade tensions at the highest level seen in many decades, led by an “America First” policy driven by the current White House Administration, the FED has its work cut out, along with the rest of the world, in trying to navigate unclear trade policies & their possible effects on economies.

USD/CAD continues to flirt with a downward sloping 3 year trend line that currently resides at 1.3026.  We have breached the line twice in recent trade but have yet to see a daily close above the line.  Such an occurrence would embolden USD bulls and see a push towards 1.3235 in short order.