Forex

Canadian dollar falls as investors await Fed’s stance on monetary policy

The Lonnie (CAD) remains steady within the week as it traded sideways on Tuesday. This came in after the U.S. consumer confidence is widely expected to add more than 123.2 points and investors awaiting the outcome of Donald Trump’s State of the Union address ahead of the Congress.

The USD/CAD pair was last seen 0.12 percent lower at $1.2424 on the same day. The U.S. Federal Reserve is about to release a statement that will suggest their stance on monetary stimulus and the currency market is projecting the benchmark rate to be unmoved at a range of 1.24 percent to 1.50 percent.

On Wednesday, the Fed will also report their final rate statement under the tenure of Janet Yellen. It will be a virtual assurance that the central bank will leave interest rate on their default levels this time. However, there are also possibilities that Fed will incite an interest rate hike by a quarter as the policy meeting concludes.

Former Fed chair Janet Yellen will make way for Jerome Powell, who will take over the office this coming February. He is widely expected to stay the course on monetary stimulus because it was marked by minimal rates to maintain a healthy economy in the United States.

On other Canadian news, there have been hosts of main indicators in the United States that were led by ADP Nonfarm Employment Change to be released on Wednesday. The gross domestic product of the country for December is estimated to jump more than 0.4 percent.

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