Canadian Dollar Waits Patiently as FOMC Decision Looms Large

The Canadian dollar traded sideways in a session marked by anticipation for the FOMC rate decision. The pair's movements were overshadowed by the renewed attacks on shipping and neighbors by Iran, which led to a surge in oil prices but had little impact on the loonie's upside.

WTI oil jumped 4.6% after Iran attacked three vessels in the Strait of Hormuz, forcing them to alter course, and launched missiles and drones at Saudi oilfields and Jordan. However, this jump was short-lived as prices eased slightly. The resulting increase in crude prices acted as a minor drag on the Canadian dollar's potential gains.

The FOMC rate decision is expected to be released at 2:00 pm today, with markets waiting for any hints about future interest rates. According to the source, Fed officials have made it clear that they will not provide detailed explanations of their decisions, regardless of the outcome.