Tomorrow the Federal Open Market Committee (it decides how to mange monetary policy), will release its update on economic conditions plus it sets the Federal Funds Rate, There will be no rate hike this time, but the most if not all economists see that the Fed will start to taper (lessen) its monthly bond purchases which in turn takes cash out of the economy which in turn will cause interest rates to up. The main concern for economists will be how quickly the Fed will stop its bond purchases altogether. It had been estimated some time in the fall of 2022 but with inflation sunning rampant, it will be a lot sooner.
The Canadian dollar is weaker on these expectations, plus commodities are mostly down across the board, natural gas is up but that’s just what it lost yesterday, an offset.
Don’t expect much of a range till after the Fed which is 11:00 am PST.
Currently* Close Range
USDCAD 1.2415 1.2367 1.2367-1.2417
EURCAD 1.4377 1.4352 1.4349-1.4398
GBPCAD 1.6902 1.6893 1.6888-1.6943
*Indicative Rates Only