Currency markets await today's Federal Reserve announcement on interest rates and inflation

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

US Dollar             1.2350-1.2450

Euro                     1.4350-1.4450

Sterling                1.6900-1.7000

The US Dollar index is marginally stronger this morning as the market now awaits word from the Federal Reserve on interest rates this afternoon. Market economists are expecting the Fed to begin tapering back their stimulus program by some $15 Billion a month, markets will also be looking for any comments on inflation and what the Fed thinks will happen in the months to come. Any talk of inflation not being as "transitory" as first thought should give the US Dollar a boost.

President Biden returns from Glasgow to a complete mess in the Democratic party, the Democrats lost two governor elections last night in Virginia and New Jersey and political infighting among House Democrats threatens to derail his economic agenda. Somewhere in Mar-a-Largo there is a former President with a big smile on his face this morning.

The Canadian Dollar as I mentioned yesterday remains range bound and will do so until we hear from the Fed later today, USD.CAD opens the day at the 1.2400 (0.8065) level so really no movement at all in the exchange rate. The price of oil has again dropped overnight to just over $81 dollars a barrel so the Loonie won't get any benefit in the short-term from the oil price.

There is nothing on the calendar of note ahead of the Fed's interest rate decision so look for markets to stay stable ahead on that announcement.