USD index is stronger this morning as investors await the US Inflation report

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

US Dollar             1.2675-1.2775

Euro                     1.4300-1.4400

Sterling                1.6750-1.6850

The US Dollar index is marginally stronger this morning as the markets await the US inflation report for November. It is expected that inflation will have jumped 6.8% in the month which is as Bloomberg put it this morning the largest increase most Americans will have seen in their lifetime. The question that the markets will be asking is of course what will the Federal Reserve do to respond to this unprecedented rate of price increases? We will find out next week when the Fed meets to discuss their policy,

The Canadian Dollar ended its recent strong run pretty quickly as USD.CAD trades back above the 1.2700 (07874) level this morning, it lost some ground to the Pound as well overnight but picked up some small gains against the Euro. Like other currencies the today's activity will depend on what the US inflation number is and what markets think will be the reaction of the US Federal Reserve.