Jan. 22: MARKET OVERVIEW
EUR/USD is trading in the 1.1580 area ahead of the ECB’s meeting later today. The European Central Bank is likely to announce a quantitative easing program and the markets are eager to hear the details of it.
USD/CAD is near 6-month highs just under 1.2400 as the Bank of Canada has made a surprise move to lower the benchmark interest rate from 1% to 0.75% citing a threat to economic growth and its inflation targets from the dramatic drop in oil prices.
The BOC’s action made investors weigh the possibility of the Reserve Bank of Australia making the same move soon. AUD/USD is hovering just above the 5-year low at 0.8032 set earlier in the month. NZD/USD has slid today to the new 2-year low at $0.7512 today.
USD/JPY rose to about 118.22 yen, retracing some of its 0.7% drop in the previous day.