Canadian dollar takes advantage of the weaker USD index

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

US Dollar             1.2550-1.2650

Euro                     1.3800-1.3900

Sterling                1.6600-1.6700

USD.RUB (opening level) 104.35

WTI (opening level) $109.93

The US Dollar index is marginally weaker today. The Dollar retreated and US Bond Yields rose this morning on comments from Fed Chair Powell that the Fed stands to increase interest rates by 0.5% at their next meeting. This pivots the Fed away from supporting the economy and jobs with low interest rates to fully battling inflation even if that slows growth in employment and expansion of the economy. This is a big move away from the Fed's stance of gradually increasing interest rates and means to me that they are much more worried about inflation damaging the economy than they previously were.

The Canadian Dollar has been able to take advantage of the weaker US Dollar as USD.CAD opens the day below the 1.2600 (0.7937) level, the Loonie has not been this strong against the US Dollar since late January. The Loonie has also made small gains against the other currencies so our Dollar is on a bit of a roll at the moment.

Nothing of note on the calendar today, US Stock markets are pointing higher after a tough day yesterday, the genocide in Ukraine continues with no sign of it ending anytime soon and the Greenback will remain volatile as the world's Central Bank pivot to focus on inflation instead of economic growth.