Oil price dropped as markets react to collapsing Indian economy

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

US Dollar         1.2400-1.2500

Euro                 1.5000-1.5100

Sterling            1.7250-1.7350

The US Dollar Index is marginally stronger this morning as stock markets are mixed and the oil price dropped as world markets are reacting to the almost complete collapse of the Indian economy as the virus ravages that country and has crushed the health care system. The global community has rallied to offer assistance but as only one in 6 in citizens has so far been vaccinated this situation will only get worse before it gets better.

The Canadian Dollar has fared quite well to start the last week of April, USD.CAD opens the day at the 1.2450 (0.8032) level which we last saw back in early January. The recurring question will be can the Loonie extend these gains brought on by comments from the Bank of Canada last week or as we have seen in the past will the currency pair bounce back to higher levels when the US Dollar starts to recover again.

Focus this week will be on the US Federal Reserve interest rate announcement and markets will be looking to see what the Fed does say about future interest rates hikes, if they act like the Bank of Canada and cut back their stimulus package then the US Dollar will jump and the Loonie will fall back.