CAD/USD Exchange rate

Investors' cautious approach appears to be bolstering the US Dollar ahead of the Federal Reserve's interest rate decision scheduled for later this evening in Europe, while the EUR/USD has fallen back below 1.0900 after reaching its year-to-date highs on Tuesday.

Gold alternates gains with losses after reaching a record high near $3,050 earlier today. Traders, in the meantime, await the Federal Reserve's upcoming monetary policy decision and the release of the revised Summary of Economic Projections.

GBP/USD comes under pressure and slips back to the 1.2970 region following Tuesday's breakout of the key 1.3000 hurdle in a context of renewed strength in the Greenback ahead of the Fed's interest rate decision.

Market participants widely anticipate the US central bank to leave policy settings unchanged for the second consecutive meeting, after cutting the interest rate by 25 basis points (bps) to the 4.25%-4.5% range in December.

In a 1933 article on national self-sufficiency1, British economist John Maynard Keynes advised “those who seek to disembarrass a country from its entanglements” to be “very slow and wary” and illustrated his point with the following image: “It should not be a matter of tearing up roots but of slowly training a plant to grow in a different direction”.