Canadian Dollar continues to rise

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

US Dollar         1.2350-1.2450

Euro                 1.4950-1.5050

Sterling            1.7150-1.7250

The US Dollar Index is marginally stronger this morning as global investors await the news from the US Federal Reserve policy meeting later in the day. US Interest rates are marginally higher as investors money moved back into US Treasury bills as a precaution, they expect the Fed will maintain their very dovish stance, keep interest rates low and let inflation run hot for the next while. Also, today President Biden is unveiling his plan to congress to spend $1 Trillion on infrastructure while offering lower- and middle-class Americans a $600 Billion tax-cut. This will all be paid for over 10 years by a tax increase to the wealthiest Americans and will be very positive for the stock market if it passes congress.

The Canadian Dollar continues to push ahead after the strong message last week from the Bank of Canada, USD.CAD opens the day at the 1.2400 (0.8064) level which we last saw in January of 2008 when it began its climb to trade near the 1.4000 (0.7143). level. The Loonie is marginally stronger against the other currencies as well so for the moment it is a feel-good story for our Dollar. That being said we know that the Canadian Dollar can snap back quickly and never moves in a straight line for very long so US buyers may want to consider grabbing some at these levels. US Dollar sellers may want to consider some hedges as a precaution against further Canadian Dollar strength in the coming weeks.

In addition to the Federal Reserve, we also get Canadian Retail Sales for February today. While an older report a strong number may give the Loonie a further push below the 1.2400 level this morning. We should see some volatility surrounding the Fed release so make sure you have your orders filled early.