The Federal Open Market Committee, which is in charge of U.S. monetary policy, is wrapping up its meeting today and will announce its decisions at noon. No rate changes are in the cards, and it is expected that the FOMC will also stay the course on its program to buy back some $40 billion in securities each month (QE3), as well as on the addition of a new $45 billion program, for a monthly total of $85 billion with no established end date.
Yesterday, we learned that the U.S. trade deficit had risen, reaching 42.2 billion in October due to declining exports. A lower greenback could be a way to restore some measure of balance.
These developments notwithstanding, the USD remains relatively solid; could the lack of credible alternatives for investors be keeping it safe? This appears to be the case for the moment at least, despite the fact that the euro has taken back 150 points against the USD in two days; but USD sellers should tread carefully.
Eurozone Industrial Production disappointed this morning (-1.4%), as did German CPI figures (1.9%); no major news today in Canada.