Both stock and currency markets remain extremely volatile

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

US Dollar             1.2750-1.2850

Euro                     1.4150-1.4250

Sterling                1.6850-1.6950

USD.RUB (opening level) 128.00-(Ruble pulled back some losses)

WTI (opening level) $113.25- (WTI Oil gave back a little overnight but pressure remains high)

The US Dollar index is marginally stronger this morning but that was after the Euro surged yesterday as investors poured back into the stock markets with the Dow Jones up 660 points on the day.

This morning saw the ECB announce that they were keeping their interest rates at current levels but did cut back the amount of stimulus they are providing to the economy. ECB President Lagarde said on the war in Ukraine that they stand ready to help impose any government sanctions on Russia that are required of them and they will ensure liquidity and smooth operations as needed.

The oil price had a big drop yesterday as the UAE announced that they would support a faster increase in global oil production but they back tracked on that statement later in the day presumably under pressure from fellow OPEC members Russia and Saudi Arabia. The oil price rebounded shortly afterwards.

The Canadian Dollar has stabilized near the 1.2800 (0.7813) level but did lose a lot of ground to the stronger Euro. If OPEC does decide to increase the production of oil and the prices drop we may see USD.CAD move towards 1.3000 (0.7692) in very quick order, we will see what the next little while brings.

Up today we get the US inflation report for February where the market is expecting an annualized inflation rate of 7.9%. With the rapid rise in the oil and gasoline prices in the past few days it is now fully expected that high inflation will be here for some time and will be affecting our daily lives on a constant basis.

North American stocks are pointing lower on the opening so it looks like the volatility will continue and investors will remain nervous. There are reports coming out of Ukraine that power has been lost at the nuclear reactor that the Russians have captured and the risk of a possible leak of radioactivity has increased. If this happens in my opinion it will be a game changer, the US Dollar will soar and the stock markets will crash quickly, something to keep an eye on.