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10.05.2019: Fed has reason for cutting interest rates Video

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Worries over the US-China trade conflict are intensifying as this trading day is coming to an end.
The US dollar index declined at the opening of the North American trading session. Investors were selling the greenback ahead of the weekend, preferring to put their money in safer assets such as the Swiss franc, the yen and gold. At the moment of preparing materials for this video, USDX quotes were hovering near the level of 97.20.
Moreover, the US macroeconomic statistics disappointed investors. Analysts predicted that the inflation rate would speed up from 1.9% to 2.1% but the actual reading came in at 2%. On a monthly basis, the consumer price index rose by 0.3%. This report can provide the Federal Reserve the reason for adopting the ultra-loose monetary policy stance. Moreover, the bank can take Donald Trump’s advice and reduce the interest rate.
Sell deals on the USD/CAD pair brought hefty profits. In early American deals the pair plummeted by 90 pips to the level of 1.3380.
The plunge was triggered by a surge in the employment level in Canada. In April the economy created 106.5 thousand jobs. It was the highest pace of growth on record.
At the same time, the unemployment level declined to 5.7% from 5.8% while the participation rate increased.
The US dollar still has the chance to recoup losses. For that, the White House should announce that the trade deal with Beijing was reached before the market closes. Let’s wait and see. That is all for today. Have a nice weekend. See you on our channel on Monday.

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