CAD.USD continues to fluctuate around the 1.2700 level

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

US Dollar             1.2650-1.2750

Euro                     1.4475-1.4575

Sterling                1.7200-1.7300

The US Dollar index is unchanged this morning in another quiet session as market traders await tomorrow's US inflation report to gauge where the US economy is going. Most currency trading seems to be centered around the Euro at the moment as the ECB continues to play down the possibility of an interest rate hike in the short-term.

The Canadian Dollar continues to pivot around the 1.2700 (0.7874) level with no signs of direction, the Loonie was able to shake off yesterday's poor balance of trade numbers as it was the first monthly trade deficit reported by the Canadian economy since last May at the height of the pandemic. In looking forward, as the protest against government vaccination mandates continue to grow and block off the nations busiest border crossing's there is a real chance that they could impact the supply chain even further which will drag down the Loonie in the short-term.

Nothing of note on the calendar today, stocks are again pointing higher this morning which should be enough to keep the Loonie around current levels for the day.