The Federal Reserve will announce no rate change but will announce that its tapering will close off a lot quicker than they even thought two months ago. Inflation is sticking around a lot longer than expected and now central banks around the world will follow suit after the FED. Since this is fully anticipated market swill probably do nothing, in fact equities might do better as the uncertainty of when the rate hikes will start has been removed.
The Omicron variant has governments implementing stricter travel regulations and if those don’t work, then expect an outright ban, hospital systems are already overloaded and while the death toll may not be as big, the number of patients will explode and clog the systems. Medical officers have started to go back to square one with the social distancing but it is being ignored, once the numbers grow then it could be another shutdown for non-essential activities.
The Canadian dollar is weaker due to the Fed and will likely gain back what it lost since yesterday after the announcement, we shall wait and see.