FED keeps key interest rates unchanged at 5.25-5.50%, signal 3 cuts in 2024

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

US Dollar        1.3550-1.3650

Euro                1.4600-1.4700

Sterling           1.6950-1.7050

WTI Oil (opening level) $68.93

The US Dollar index is marginally higher this morning is a quiet overnight session as traders await the latest decision on interest rates later this afternoon. With inflation in the US ticking up just a little yesterday most investors will not be expecting an interest rate hike today but will be looking to see what the Fed is thinking on timing of interest rate cuts next year. My guess is that the Fed will once again indicate that they will stand ready to increase interest rates again if inflation remains elevated but they are happy with the current level of rates as the economy is performing well. I don't believe they will give any indication of when interest rates cuts will happen next year as they don't want to take the focus off of inflation, this stance should support the US Dollar and push stocks a little lower today.

The Canadian Dollar is for the most part unchanged this morning as USD.CAD continues to range trade in what only can be described as tight ranges. The Loonie did pick up some gains against the British Pound overnight as that country's economy contracted in October forcing the Pound much lower. Where the Loonie goes over the next couple of days will depend on what the Fed says today.

US Stocks had a strong day yesterday while Canadian stocks dropped on poor performance from the energy sector, right now stocks are pointing higher but everything will depend on what the Fed does. Also, tomorrow we get four other Central Banks including the ECB reporting on interest rates so the market s will continue to be dominated by Central Bank news for the rest of the week.