As global economies are starting to heat up faster than anticipated, market participants are noticing that the Federal Reserve may be in the early stages of a campaign to ready markets for reducing its $120 billion in monthly asset purchases to stimulate the economy. At least five Fed officials have publicly commented on the likelihood of those discussions in recent weeks, however, the actual announcement of this decision to reduce the monthly asset purchases won’t take place for a few months yet. The FED wants markets to be weaned off so that the impact will not be as severe and cause any potential economic slowdowns.
The Canadian dollar is a bit stronger to the USD even as commodities are lower, it appears to be a weaker USD to most currencies rather than any set economic data.
Expect a narrow range, 1.2045-1.2095.
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