USD index rises as investors see high volatility in Asian and European stock markets
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.2600-1.2700
Euro 1.4550-1.4650
Sterling 1.7100-1.7200
The US Dollar Index is stronger this morning as volatile Asian and European stock markets are again lower on the back of US Treasury Bond Yields reaching a high of 2.12% overnight, rates last seen in June of this year. With supply chain issues causing massive energy price hikes fears of growing inflation are front and entre with investors and nervousness is starting to take over the markets once again. This situation is not being helped by the game of chicken being played between the Democrats and Republicans who continue to fight over raising the government debt ceiling.
The Canadian Dollar has been holding its own despite this volatility with the stock markets. The Loonie was stronger at one point overnight against the US Dollar but as the Greenback surged the Loonie gave back some of those gains and USD.CAD opens the day at the 1.2625 (0.7920) level after trading below 1.2600 (0.7937) during the overnight session. The Loonie was able to hold onto its current levels against the other currencies so overall not a bad night for our Dollar.
We get some early Canadian inflation data in terms of the Producer Price index being released this morning and given the emphasis on overall inflation traders may some attention to this report, for the most part the Canadian currency market will be focusing on what happens with stocks today and the debt ceiling negotiations that are ongoing in the US.
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.3950-1.4150
Euro 1.4730-1.4930
Sterling 1.7700-1.7900
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.3600-1.3700
Euro 1.4300-1.4400
Sterling 1.6600-1.6700
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.2650-1.2750
Euro 1.5500-1.5600
Sterling 1.7200-1.7300