USD/CAD touches fresh high around 1.2450 ahead of FOMC

USD/CAD surges during the New York trading session, up 0.06%, trading at 1.2424 as portrayed by European and US equity indices fluctuating between gainers and losers, the market sentiment is subdued ahead of the Federal Reserve’s November meeting.

Retreating crude oil prices, with WTI falling by almost 3.5%, impacted the oil-linked currency, acting as a headwind for the CAD.
The price action is expected to remain within narrow ranges, as the USD keeps contained, showed by the US Dollar Index, at 94.11, barely up 0.02%.


US T-bond yields rise ahead of the FOMC, the 2-year almost at 0.50%, whereas the U. S. 10-year Treasury yield advances two basis points at 1.566%, while the U. S. 2-year Treasury yield, which could give hints of market participants’ view about short-term interest rates, is at 0.48%, three basis points up.

Investors expect the Federal Reserve to announce the reduction of its pandemic Quantitative Easing program.

The total amount of monthly purchases of about $120 billion is expected to be cut by $15 billion, as the US central bank looks to normalize monetary policy conditions.

Once the statement is released, the focus would turn to the Fed Chairman Jerome Powell post-meeting press conference.