USD index falls as stock markets show significant increase

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

US Dollar         1.2000-1.2100

Euro                 1.4650-1.4750

Sterling            1.7050-1.7150

The US Dollar Index is marginally weaker to close out a down week for the Greenback. Fears of the Federal Reserve increasing interest rates due to high inflation were calmed with the release of the Fed minutes, stocks again pushed higher after the minutes release and finally a pullback in the high price of raw materials this week have all helped to push the US Dollar a little lower. That being said currency markets remain nervous about the global recovery and the Greenback could swing in a moments notice, any future economic indicator that turns negative could easily change investor sentiment and the US Dollar could again become quite volatile.

The Canadian Dollar was able to take advantage of the weaker US Dollar and extend some overnight gains, this was despite a drop in a lot of commodity prices. Overall a good week for the Loonie, it still has the 1.2000 (0.8333) level in its sight but that will be a tough level to break and hold.

We do get Canadian March Retail Sales numbers this morning but as that number is two months old, I don't think market participants will pay much attention, look for USD.CAD trading to hang near the 1.2000 level as the market slows down for the long weekend.