Therefore, there is a "hawkish" risk going into today's decision, which should keep stocks and bonds under pressure till the decision is announced.
Further evidence of soaring inflation appeared Tuesday, with data showing the PPI inflation jumped to record levels, just a week after consumer prices rose to their highest level since 2008. The core CPI is, however, the highest in three decades.
The USDCAD pair will most likely be volatile ahead of the FOMC meeting, as Canada releases its own CPI indices during the US session.
From other news, US indices were trading near their record highs. Should there be no hawkish surprise, another leg higher seems most likely.
The same goes for precious metals - if the Fed remains ultra dovish, both gold and silver could explode higher.