Canadian dollar gains back some strength against the major currencies

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

US Dollar         1.2550-1.2650

Euro                 1.4950-1.5050

Sterling            1.7400-1.7500

The US Dollar Index is marginally higher this morning as the Greenback moved higher on the back of an overnight jump in the 10-year US Treasury yield back to the previous recent high of 1.6%. Investors are still very concerned with the rise in inflation and subsequent interest rates so next week's US Federal Reserve meeting will take on added significance as the market will want to hear from the Fed on how they will handle this jump in interest rates. Ahead of that meeting the US Dollar should remain steady.

The Canadian Dollar has fared better than some of the other currencies overnight with USD.CAD opening the day at the 1.2543 (0.7973) level after trading below 1.2525 (0.7984) during the night. The Loonie also picked up some strength against the other currencies so overall the Canadian market remains positive after the Bank of Canada meeting on Wednesday.

Up today the Canadian market will be again in focus as we get the Canadian employment report for February and the market is expecting job growth of 75K in the month as the country came out of January's lockdown. A strong number should push USD.CAD below the 1.2500 (0.8000) level for the first time in weeks.