USD/CAD is edging higher in its range, trading close to 1.1230 as the Fed tries to remind the market it remains a player in the game. Lacker has been on the tape all morning with hawkish comments and a report from a New York consulting shop says the Fed was surprised at the market's reaction to the Q3 slowdown.
They seem to be trying to send the message that there is no way a cut is coming any time soon. One has to ask why the statement after last week's FOMC meeting was not more explicitly hawkish, but the Bernanke Fed clearly has work to do on its communications strategy.
Offers are seen toward 1.1240/50 with Corporate Canada seen selling into strength today. Canadian year-end tomorrow are helping trim market volumes, dealers report.
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