American dollar is pointing higher as traders get nervous about significant rise in US inflation

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

US Dollar             1.2650-1.2750

Euro                     1.4450-1.4550

Sterling                1.7200-1.7300

The US Dollar index is higher this morning after yesterday significant rise in the rate of inflation, there is a growing expectation that interest rates will rise significantly this year in the US as the Fed tries to combat this threat to the economy. Goldman Sachs published a report this morning to their customers that they fully expected a 0.25% increase at every (7 hikes) Fed meeting this year, traders are now looking at a 50/50 chance of a 0.50% hike in March and yesterday a Fed committee member stated that he sees a full percentage point hike in US interest rates by July. Clearly interest rates in the US are going higher and this should drag stocks lower and the Greenback higher.

The Canadian Dollar has held in as best it can, USD.CAD opens the day once again near the 1.2700 (0.7874) so considering all that is going on with the border disruption and higher interest rates in the US the Loonie is not doing all that bad at the moment.

Nothing of note on the calendar today, stocks are pointing lower on the opening so the US Dollar should remain supported. The Canadian news was reporting that some auto manufacturing was suspended yesterday as a result of supply chain deliveries caused by the border dispute. It appears that in Canada law enforcement does not have the methodology for breaking up large scale protests and as long as this particular situation at the border stays in place it won't be long before it has a bigger effect on the economy and the Canadian Dollar.