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By xemarketanalysis January 7, 2019 2:12 pm
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    XE Market Analysis: US Dollar Falls as Fed Expected to Pause Rate Hikes


    • US Dollar weakens as Fed expected to halt rate hikes
    • The Canadian dollar rises to 4-week high as oil prices rebound
    • Sterling gains ground before crucial Parliamentary Brexit vote


    The Canadian Dollar touched its strongest level since mid-December today as oil rose by 1.3%. This move, combined with US Dollar weakness, helped the CAD gain 0.5% against its US counterpart.  


    The US Dollar weakened against a basket of currencies today as fears over a pause in rate hikes impacted the currency. Even with strong US jobs numbers on Friday investors are now starting to believe that the world's largest economy is running out of steam. Experts say comments from Fed Chair Powell have hurt the potential of further rate hikes this year, with a rate cut being considered for later on in the year. 


    The Pound rose today ahead of the Parliamentary vote over Brexit. The date that PM May postponed before Christmas and the 'meaningful vote' will now be held on the 15th January. The buzz around this vote, combined with the weakness of the Greenback pushed GBP higher against USD by 0.3% today. 


    The Euro is one of the biggest gainers on the day against the US Dollar. Investors are moving towards safe-haven currencies upon weakness from the Greenback. Investors have flocked to the currency, and it is up by 0.6% today.


    The Loonie has gathered strength ahead of the Bank of Canada's rate decision on Wednesday this week. The Canadian Dollar rose on an oil price rebound and combined with US Dollar weakness we have seen USD CAD down by 0.5% in today's trading.


    The Australian Dollar is up near 3-week highs as risk assets took a boost on the assumption policymakers will step in to support global economic growth. The Australian and New Zealand Dollars are both up by similar percentages against its US counterpart, both up 0.4%.


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