Currency markets have shown lowest volatility since Covid started

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

US Dollar         1.2025-1.2125

Euro                 1.4650-1.4750

Sterling            1.7050-1.7150

The US Dollar Index is marginally higher in a once again quiet market, in fact the recorded volatility of the market has not been this quiet since the pandemic started. Most traders and investors are still focused on inflation and when the Fed is going to start tapering their stimulus program, so it will most likely stay this way until they change their policy.

USD.CAD continues to range trade ahead of Thursday's US inflation report as it opens the morning session at the 1.2075 (0.8282) level. I forget to mention yesterday that we get the Bank of Canada Interest rate decision tomorrow and while the market is not expecting any changes to their policy, Canadian traders will be watching what they say about the economy and of their plans for future interest rate hikes.

We do get some Canadian Trade data today so we may get a little movement in the currency but for the most part it should remain quiet until later in the week.