USD/CAD Drops to Two-Year Lows After Fed Statement

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Drops to Two-Year Lows

Paypal Higher on Strong Q2 earnings

EU Markets Open Mixed

 

Market Recap – This week in a nutshell:

Another eventful week is nearing an end; on Tuesday Caterpillar Inc. (CAT) announced stronger than expected second-quarter earnings which caused the company’s shares to rally. Specifically, sales and revenues were at $11.3 billion, compared with $10.3 billion in the second quarter of 2016. On Wednesday GBP edged higher, after data revealed that Britain’s economy strengthened in the second quarter, supported by the services sector and a thriving film industry. The U.K. economy grew 0.3 percent in the second quarter, up from a previous 0.2 percent.*

 

Thu, July 27: In Today’s Markets…

 

1. USD/CAD Drops to Two-Year Lows After Fed Statement

The Canadian dollar climbed to its highest level in the last two years versus its US counterpart after the Federal Reserve released a relatively dovish policy statement on Wednesday. The loonie (CAD/USD) continued to edge higher today and rallied against a weak Swiss franc. The Federal Reserve’s dovish statement led to a drop of the US dollar against its major rivals. The loonie also got a boost from rallying crude oil prices. The reason for the rally was the unexpected draw in US oil inventories.**

 

2. Paypal Higher on Strong Q2 earnings

Paypal Holdings Inc (PYPL) posted market-beating second quarter earnings results yesterday which caused the share to rally. PYPL stocks point to a another bullish day according to investing.com. Paypal’s Q2 earnings and full-year forecast exceeded analysts’ expectations at $0.46 per share, which was $0.03 higher than the Wall Street consensus. Revenues also jumped 18.3% from last year to $3.14 billion, topping analysts’ forecasts.**

 

3. EU Markets Open Mixed, Earnings Ahead

European bourses opened mixed on Thursday morning after the U.S. Federal Reserve kept interest rates unchanged and as investors gear for a new deluge of earnings reports.The Federal Reserve signaled yesterday that shrinking of holdings bonds could start as soon as September. The U.S. central bank maintained its benchmark key interest rate at 1.25% and suggested it would stick to its slow path of monetary tightening. On the earnings front, Deutsche Bank, Volkswagen and Bayer are among the major companies reporting their latest figures today.***

 

*Source: Investing.com
**Source: Stock News
***Source: CNBC

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