USD index is lower ahead of the FED's rate hike announcement

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

US Dollar             1.2650-1.2750

Euro                     1.3925-1.4025

Sterling                1.6600-1.6700

USD.RUB (opening level) 98.85(Ruble stronger on possible progress in the peace talks)

WTI (opening level) $96.60(a jump of $2 in the oil price from yesterday)

The US Dollar index is weaker this morning and the Euro is much stronger. Comments from Russian Foreign Minister Lavrov seem to indicate that progress is being made with the peace talks, nothing can be taken for granted but if a peace deal is made soon then you can expect the Euro and stocks to jump higher and the US Dollar and the oil price to fall off.

The Canadian Dollar like other currencies has been able to take advantage of the weaker US Dollar overnight as USD.CAD opens the day at the 1.2700 (0.7874) level, down a 100 points from yesterday's opening at 1.2800 (0.7813). The Loonie was also able to take advantage of its strength as it made gains against the other currencies so overall a strong performance for the Canadian Dollar in the last 24 hours.

After many years of markets wondering the day has arrived when the US Federal Reserve will finally increase interest rates. There are a few questions that the financial markets will want answered today, will the Fed increase interest rates by 0.25% or by 0.5%, what is the prognosis for inflation going forward, will the pace of interest rate hikes increase in the light of expected high inflation numbers and finally what effect will the war in the Ukraine have on the US economy?

After the Fed release this afternoon we should have a good sense of where the US Dollar is headed.