The Federal Reserve announcement this morning will likely contain nothing earth shattering, rates will stay the same, ever vigilant on watching which way the economy is going, and rates will likely stay low for the next 18-24 months.
Meanwhile in Washington, Congressional leaders are closing in on a $900 billion coronavirus relief deal, while millions of Americans are wondering how they are going to make through the holidays.
Both the euro and the GBP moved higher to the USD on positive news that the Brexit talks are not dead however, the next few days will likely be make it or break it, we shall have to wait and see.
The Canadian dollar is a bit weaker to the USD but overall, it is still strong, and this has the Bank of Canada worried. As the world’s economy starts to come grow in a post pandemic environment, the BoC is worried that Canadian exports will become too expensive and as a result the Canadian economy will not get off to a good start. Basically, the only tool in the tool box will likely be lower interest rates which it is loath to do but it may be forced to doe this in order to get things rolling.
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