Calm Before the Storm: Markets Hold Steady Ahead of Key Fed and BOJ Decisions

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

US Dollar        1.3800-1.3900

Euro                 1.4950-1.5050

Sterling            1.7750-1.7850

WTI Oil (opening level) $75.34

The US Dollar index is unchanged this morning as traders await word from the Federal Reserve on interest rates tomorrow. Ahead of that announcement the Bank of Japan meets on it's interest rate policy this evening and there is growing expectation that the BOJ may actually increase interest rates to help to defend the Yen. If they actually do this it would be the exact opposite of what most other Central Banks are doing at the moment.

 The Canadian Dollar is unchanged this morning against the US Dollar but is marginally weaker against the other currencies. As I mentioned yesterday the immediate direction for the Loonie will come from the Federal Reserve announcement, ahead of that event the Loonie should remain trading in a tight range.

 Stocks should have a busy day as the market get set for the earnings report from Microsoft this later this afternoon, given the poor recent performance from Tesla and Google parent Alphabet it won't be surprising if poor earnings out of Microsoft drag the market lower.

 The Currency market also gets some early job opening data this morning which will set it up for Friday's full employment report. We could start to see some additional volatility throughout the day so make sure you get your orders in ahead of the Fed announcement tomorrow.