CAD index falls as the Bank of Canada cuts its stimulus program

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

US Dollar         1.2500-1.2600

Euro                 1.4750-1.4850

Sterling            1.7325-1.7425

The US Dollar Index is unchanged this morning but that was after it traded a bit weaker yesterday after Fed Chair Powell's testimony to Congress. In his statements he basically stated that while inflation is running hotter than they previously thought it would it is too soon to remove the stimulus from the economy. On these comments US interest rate yields fell back and stocks jumped a bit higher.

The Canadian Dollar had a tough day yesterday as the Bank of Canada announced that they were cutting back their stimulus program, they indicated that growth for this year will not be as strong as first thought but they did increase their growth expectation for 2022. They also indicated that inflation will continue to run hot well into 2023 before they start to look at increasing interest rates to combat it.

USD.CAD jumped to trade at a high of 1.2545 (0.7971) before pulling back a little bit early this morning, the Loonie also lost ground to the other currencies overnight so the prognosis for the short-term at the least is not looking good for the Canadian Dollar. The price of oil also dipped quite a bit overnight as it looks like OPEC will reach an agreement to increase production going forward so at the moment not much positive news for the Loonie.