USD index weakens as stocks start to recover some of yesterday's losses

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

US Dollar             1.2650-1.2750

Euro                     1.4350-1.4450

Sterling                1.7200-1.7300

The US Dollar index is marginally weaker this morning as stocks are set to recover some of yesterday's losses as markets react to the first round of sanctions that the West has placed on the Russian economy. Today it is a trading holiday in Russia but the ruble is trading a little weaker against the US Dollar as the markets will await the inevitable response from Russia, the sanction that will hurt both countries the most is the cancellation of the certification of the Nordstream Natural Gas pipeline by Germany.

The Canadian Dollar is a bit stronger this morning but still contained in tight ranges. The Loonie has held in quite well as stock market volatility has been the focus for the last few days and the Loonie has been quite resilient.

There is nothing on the economic calendar of note for today, with stocks pointing higher on the opening the US Dollar may give back some small amounts of strength during the day and USD.CAD may be able to drop towards the 1.2650 (0.7905) level. If this happens it might be a good buying opportunity for US Dollar buyers to pick up some short-term purchases.