Market Awaits PCE Inflation Data; Stocks Flat, CAD Steady

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.3650-1.3750

Euro                 1.4600-1.4700

Sterling            1.7300-1.7400

WTI Oil (opening level) $82.06

The US Dollar index is marginally stronger this morning as the market gets set for the PCE measure of inflation and political uncertainty in France and the UK continues to weigh on the Euro. The US Dollar remains in demand on global markets as the index will close higher for the second quarter in a row and is up some 5% since the start of the year. The Greenback will most likely remain in demand until we hear from the Fed on an interest rate cut later this year.

The Canadian Dollar remains on the sidelines as USD.CAD continues to range trade and closes out the month near the 1.3700 (0.7299) level. The oil price continues to move slowly higher but I am not sure it will affect the Loonie all that much.

Markets appear to be ignoring the debate last night as most news outlets are reporting that Trump out performed Biden quite easily. I doubt it will happen but if the Democrats do not replace Biden as their candidate then the path for Trump to the White House could become an easy one.

After a positive day yesterday stocks are poised for a flat opening as the market gets ready for the inflation data later today. The market is expecting a year-over-year PCE price index of 2.6% which would be a slight drop from the 2.7% in April. If this trend continues then there should be room for a Fed rate cut later in the year.