Not surprisingly, the U.S. Federal Reserve (Fed) opted for the status quo. In the statement that accompanied the decision, it was noted that reducing the balance sheet will begin “relatively soon,” meaning that September remains the most likely time based on market expectations. It was also stressed that inflation is stubbornly below the 2% target, despite an expanding economy, which signals that the Fed will not necessarily be in a hurry to raise rates. The U.S. dollar lost close to a cent against the loonie based on these comments late in the afternoon. Gold emerged the big winner.
U.S. crude oil inventories plunged by 7.2 million barrels last week, well beyond the expected drop of 2.6 million. This marks the fourth straight week of lower inventories at a time of the year when we typically see increases. Crude oil gained ground for the third day in a row, closing up 1.61% since the previous day.
Today, we’ll be keeping an eye on a full slate of indicators south of the border, including Initial Jobless Claims, Durable Goods Orders, Wholesale and Retail Inventories and Retail Sales for June.
Yusuf Kocagozli
Range of the day: 1.2400 – 1.2490