CAD pulls back some losses against the American Dollar

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

US Dollar         1.2350-1.2450

Euro                 1.4700-1.4800

Sterling            1.7200-1.7300

The US Dollar index is marginally weaker this morning after another strong day yesterday. Investors have moved to the sidelines for this morning as they await Fed Chair Powell's remarks to Congress and his answering of questions on the high rate of inflation and what will be happening with US interest rates. In Europe, the Euro fell this morning as there is some concern that ECB policy makers are not all on the same page when it comes to their inflation problem, there is no clear consensus as how to tackle this problem in Europe so if the US Dollar jumps higher after Powell's testimony the Euro may bear the brunt of that strength in the short-term.

The Canadian Dollar was able to pull back some losses overnight as USD.CAD opens the day at the 1.2380 (0.8078) level down significantly from yesterday's high near 1.2480 (0.8013). The Loonie did receive some benefit from the weaker US Dollar overnight but the commodity currencies also received some benefit from oil chatter where traders have pushed the oil price higher on the expectation that the price could hit $100 a barrel later this year on the back of a big demand for travel in the US alongside an accompanying lack of supply. It is expected that OPEC will increase the oil supply level in the near future but for the moment the oil price should remain volatile.

Nothing of note on the calendar this morning so markets are awaiting Powell's testimony before Congress before they start moving again, depending on his comments it could be a volatile day.