Markets Brace for Fed: Stocks Dip, VIX Spikes, and JPY Firms Amid Yield Shifts

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.4220-1.4440

Euro                 1.4900-1.5140

Sterling            1.8040-1.8290

WTI Oil (opening level) $70.65

The CAD is opening at 1.4326 ( 0.6980)

Key Points

·    Equities: Main US indices suffer modest correction. Ugly breadth indicators as Dow Jones suffers ninth consecutive losing day,

·    Volatility: VIX spikes, Fed rate decision in focus

·    Currencies: JPY firms slightly on softer US treasury yields. CAD and AUD dip to new cycle lows versus USD

·    Commodities: Gold drifts as focus shifts to next year’s rate outlook

·    Fixed Income: US yields edged modestly lower ahead of FOMC, UK yields jump again after strong wage data.

·    Macro events: FOMC Meeting and Fed Chair Powell press conference