FX Daily Update
The National Bank of Canada | Apr 30, 2015 08:47AM ET
The Fed Will Wait and See
Yesterday a flurry of U.S. economic indicators was released. First, the 1st reading of U.S. GDP data revealed that in Q1, the economy only grew at a rate of 0.2% (YoY). Given that the 1% forecast was already conservative, this result proved disappointing. Despite this, analysts are still projecting for growth to bounce back thanks to an increase in consumer spending.
Second, as expected, the U.S. Federal Reserve made no changes to its monetary policy. The weak Q1 data played a part in this, even if FOMC members are of the opinion that it reflects "transitory factors" and that the economy will grow at a moderate pace this year. In addition, the Fed will stop using forward guidance, which means that its future decisions will be based solely on figures. Consequently, the loonie appreciated against the greenback, and the S&P 500 ended the session in the red.
Today’s economic indicators include Canadian GDP data and Personal Spending figures in the U.S. Have a good day!
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