Yesterday, the Federal Reserve stated that it was rapidly reducing the amounts of its monthly bond purchases. The Fed will be buying $60 billion of bonds each month starting in January, half the level prior to the November taper and $30 billion less than it had been buying in December. Once the bond purchasing program has wound up, the Fed will start raising interest rates in early 2022, for a total of three quarter point rises. Equities responded favourably initially, while Canadian dollar rallied against the USD.
This morning, the positive sentiment is wavering, the NASDAQ is down 1.85%, not looking strong, 78 stocks new 52 week highs outpaced by 110 52 week lows, declines outstrip advances 2406 to 2022. Apple fell 3% along with other major tech stocks, expectations that Apple will not perform as well is 2022 as in 2021 has caused it to drop.
The Canadian dollar has rallied to the USD, commodities as a group are higher, with oil prices up over 2%, expect the CAD to range trade, however, as the day goes on and if equities go into even further negative territory, then expect the CAD to weaken.
Previous
