That appears to be the message investors are taking away from yesterday afternoon's Fed statement and press conference by Chair Janet Yellen. If economic conditions allow, the Fed says that it is, however, prepared to normalize rates in mid-2015. Markets appear to approve of the decision, with the S&P 500 closing the day up more than 2%. Many other assets followed suit, with crude in particular up 2.3% this morning. The loonie also made the most of this favourable environment, gaining more than half a cent against the greenback.
In geopolitical news, the United States and Cuba have agreed to renew diplomatic ties, bringing an end to one of the last vestiges of the Cold War. Economically, this may be good news for Canada, as many Canadian companies do business on the island. On the agenda this morning, we have Initial Jobless Claims south of the border at 8:30 followed by Leading Indicators at 10 a.m.
Have a great day!
Xavier Villemaire
- Range of the day: 1.1520 - 1.1650