CAD takes significant loss against major currencies

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

US Dollar         1.2100-1.2200

Euro                 1.4700-1.4800

Sterling            1.7100-1.7200

The US Dollar index is unchanged this morning but that was only after it jumped considerably higher during Friday's session. Markets were still pushing the Greenback higher after the high US inflation report earlier in the week.

Markets have backed off volatility once again this morning as they await the next forecast from the US Federal Reserve on Wednesday. The big mover overnight was Sterling as GBP.USD fell from a high of 1.4180 to trade as low as 1.4085 overnight, in the UK Prime Minister Johnson is being forced to delay the country's opening by 4 weeks in order to try and get the breakout from the Delta strain of the virus under control. The Canadian Dollar was able to pick up some small gains against the Pound overnight but not enough to cover off Friday's rise in GBP.CAD to a high of 1.7165

The Canadian Dollar is unchanged during the overnight session but that is after it lost a good bit of ground to the US Dollar and other currencies on Friday, USD.CAD opens the day at the 1.2160 (0.8223) level which is the currency pairs highest level in over a month.

The Loonie was not able to garner any real support from a big jump in the oil price this morning, West Texas oil hit a price of $71.65 a barrel on the back of expected demand for oil increasing as Western economies come back on line during the summer. Our dollar still remain very vulnerable to the movement in the US dollar at the moment so we could see USD.CAD move much higher if the US Fed makes any negative comments about US inflation later this week.

In addition to the Federal Reserve announcement on Wednesday we also get the Canadian Inflation report for May where we are expecting inflation to once again show it is running hot in Canada. It should be a busy week for the currency markets so make sure you get your orders in early.