USD index is much stronger as traders react to the FED minutes

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

US Dollar             1.2725-1.2825

Euro                     1.4450-1.4550

Sterling                1.7250-1.7350

The US Dollar index is higher this morning and in particular the US Dollar is closing in on a 5-year high against the Japanese Yen. US market interest rates (10-year yield is at 1.73%) have jumped higher and stocks had a tough day as the US Federal Reserve minutes showed the Fed is concerned with the US economy overheating and inflation running rapid. It is now expected that the Fed will move quicker on ending stimulus and increasing interest possibly as early as March. This program should continue to give the US Dollar further overall strength.

The Canadian Dollar is lower this morning as it is feeling the effects of the stronger US Dollar. USD.CAD opens the day at the 1.2765 (0.7834) level and the Loonie also lost ground to the other currencies so clearly the markets view the Canadian Dollar as vulnerable to interest rate hikes south of the border. It may stay this way until we get guidance from the Bank of Canada on when they will increase interest rate hikes here in Canada.

We do get some trade data from both sides of the border but for the most part the market will await tomorrow's employment numbers. Today is also the one year anniversary of the assault on Congress, I believe security is very tight in Washington this morning but the threats to democracy in the US will be front and centre once again for the world to witness.