USD index remains unchanged

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

US Dollar         1.2650-1.2750

Euro                 1.5350-1.5450

Sterling            1.7500-1.7600

The US Dollar Index is unchanged to start the North American session as markets weigh the comments yesterday from the US Central Bank. In a speech yesterday, Fed Chair Jerome Powell said that the low interest rate environment will be around in the US for some time as it will be needed to help get the economy back to a full-employment situation. His speech flew in the face of criticism from other economists that say such a prolonged plan will lead to high inflation but that notion fell away as yesterday saw the US annualized inflation rate for January come in at 1.4% which is well below the 2% that the Fed would consider acceptable. For now, the stock markets should continue to push forward on the back of the Fed's policies.

The Canadian Dollar has picked up some strength against the US Dollar with USD.CAD opening the session at the 1.2680 (0.7886) level and at the moment it looks to be picking up some steam. Once again there are no real domestic factors in play at the moment so the Loonie will continue to move around at the whim of the US Dollar. That may change a little tomorrow as we get some Canadian inflation data but for now we shall see what that brings.

Nothing on the calendar for today so look for USD.CAD to continue to trade a little lower but will remain fairly subdued throughout the day. Stocks are pointing a little higher to open, if they have a strong day then you will see the US Dollar trade weaker and the Loonie will continue to benefit.