Crazy day on the stock market pushes USD index to its two-week high

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

US Dollar             1.2600-1.2700

Euro                     1.4200-1.4300

Sterling                1.7000-1.7100

The US Dollar index has reached a two-week high as the US Federal Reserve begins its committee meeting and the market reacts to one of the wildest days on the stock market in years. As the market opened the value of stocks plunged to over 1,000 points on the Dow Jones but then recovered in the afternoon to close about 100 points higher on the day. The market has not seen a day like this since the dot-com bubble days of 2001.

On the geo-political front, the US has announced that they are putting 8500 troops on heightened alert for deployment in Eastern Europe in the event that Russia invades the Ukraine. Talks to diffuse the situation are ongoing but at this point the market is not sure they will bear fruit.

The Canadian Dollar is marginally weaker against the US Dollar and opens the day at the 1.2640 (0.7911) level. With the big crash in stocks yesterday morning the oil price dropped as well so that hurt the Loonie a little, the oil price did recover somewhat in the afternoon but it is still below last weeks high point.

Nothing of great note on the calendar for today, markets are getting ready for the Federal Reserve and Bank of Canada announcements tomorrow. Stocks are again pointing much lower on their opening this morning so it looks like we are in for more crazy volatility.