The greenback is looking depressed ahead of the release of important US inflation data by the end of this week, While the market are waiting today for Yellen's speech from London looking for new clues of the US monetary policy.
After The FOMC members maintained their median expectation of having another 0.25% hiking by the end of this year.
The committee underscored its appreciation of the current inflation pressure easing down in its released assessment.
The committee expected the inflation rate to continue to be in the short run below its 2% yearly inflation target, before stabilizing around this rate over the medium term as it targets.
The committees expected the inflation rate to be at 1.6% this year down from 1.9% it's expected in March, but it kept its forecast for 2018 and 2018 at 2% yearly as the same as its median term inflation target expecting the GDP annualized growth rate to be by 2.2% this year from 2.1% it expected in March.
So, the release of Apr US PCE which is the Fed's favorite gauge of inflation is expected to take much of the market attention by the end of this week, after it had shown rising by only 1.7% yearly in March.
While US GDP final figure of the first quarter is expected to show next Thursday annualized growth by 1.2% as the same as the second reading, after the shocking preliminary reading of it had shown previously growth by only 0.7%.
UST 10 YR yield is now well below 2.15% at 2.13%, while EURUSD managed to stand well above 1.12 this morning, after The ECB president Draghi had said today that the economic growth in EU is broadening but the prudence in adjusting the monetary policy is still needed.
The sentiment in the European session is not running well, after EU Commission imposing of $2.7b fine against Google and following campaigned slide of equities in HK market during the Asian session.
While the markets in the American session is expected to be undermined by charging the Brazilian president Tamer with corruption exposing Brazil to further political instability.
CAD is now underpinned by the oil prices rebound too, after it had been already boosted by rising odds of having sooner than later increasing of the borrowing costs in Canada.
After BOC senior deputy governor Wilkins's previous comment that the economic growth continues to broaden by ideally and there will be assessing of all placed stimulus measurement to see, if they are still needed.
USDCAD 1.3200 supporting area can be in check with persisting of this current market sentiment, while WTI is close but below $44 per barrel ahead of US EIA crude oil inventory release of the week ending on Jun. 23 tomorrow.
Have a good day
Kind Regards
Global Market Strategist
Walid Salah El Din
Mob: +20 12 2465 9143