USD/CAD: Event-Driven Start To The Week

Heading into the new week, all eyes will be on tomorrow's Fed meeting. Consensus opinion is confidently predicting a "pause", yet opinion is not unanimous. The basic argument for a pause is that housing is slowing, growth has fallen off in Q2, job growth is soft, and all of the above was more or less predicted by Ben Bernanke in his Congressional testimony. His argument at the time was that slowing growth and the effects of past rate hikes had set the course for restrained inflation heading into the 2 nd half. On the other hand, most measures of inflation are above what most central banks would consider their "comfort level", wage inflation, in particular, is concerning, and there remains speculation that the new Chairman will not want to risk his credibility so early in his tenure. All will be revealed tomorrow. Read More....