US Inflation report showed 5% year-over-year jump in inflation

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

US Dollar         1.2050-1.2150

Euro                 1.4650-1.4750

Sterling            1.7100-1.7200

The US Dollar index is marginally higher this morning but in reality, the currency market which was all geared up for yesterday's US inflation report showed very little reaction to the 5% year-over-year jump in inflation which is the highest increase in prices in the US in over 13 years. I am assuming that most investors are believing what the Fed is saying that US inflation will be temporary and that they will not increase interest rates until the economy is on a solid footing.

Sterling has been a little more active than other currencies in the coming days as that countries March annualized GDP came in at 2.3% which was below expectation and on top of that poor number the government may have to rollback their reopening program as the Delta variant first found in India is taking hold in Britain and driving virus cases higher.

The Canadian Dollar is marginally weaker this morning but like other currencies it did not react with much movement to the US inflation report, USD.CAD opens the day at the 1.2110 (0.8258) level so the Loonie remains range bound. It did lose significant ground to the Pound yesterday but has pulled back some of those losses overnight.

With nothing of significance on the calendar today look for USD.CAD to remain range bound around the 1.2100 (0.8264) level for the remainder of the day.