New Zealand Dollar jumps 1% higher as the country expects interest rates increase

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

US Dollar         1.2050-1.2150

Euro                 1.4750-1.4850

Sterling            1.7100-1.7200

The US Dollar Index is for the most part unchanged this morning in a quiet overnight session. The big mover on the currency market was the New Zealand Dollar which is 1% higher this morning in reaction to comments from that country's Central Bank where they stated that interest rates may start to rise in 2022. Also, yesterday, one of the US Federal Reserve committee members said in a speech that the Fed was ready to start talking about the slowing down of the US stimulus plan. It looks like it is just a matter of timing before the US starts to move towards a higher interest rate regime but when that is remains a mystery.

The Canadian Dollar lost some ground overnight as once again USD.CAD was not able to break below the 1.2000 (0.8333) level and the rate moved higher throughout the night. The Loonie also lost a little ground again to both the Euro and Pound so the lustre may be coming of the Canadian Dollar in the short-term.

Nothing of note on the economic calendar today, we do get a few more US Federal Reserve committee members giving speeches around the US, market watchers will be looking to see if any more hints are dropped as to the timing of interest rate hikes. US stocks are pointing a little higher so the US Dollar may give back a little strength today and the Canadian Dollar should remain steady.