USD index continues to benefit from rising interest rates

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

US Dollar             1.2550-1.2650

Euro                     1.3750-1.3850

Sterling                1.6350-1.6450

The US Dollar index is marginally higher this morning as the Dollar continues to receive benefit from rising US interest rates and a Federal Reserve that has pledged to continue to increase rates throughout the year. The Euro is also a little higher this morning as markets watched the outcome of the French Presidential Election over the weekend where President Macron has a 5 point lead over far right candidate Le Pen, they will now head to a runoff election on April 24th. If Le Pen was to secure a victory then I am sure you would see the Euro take a big hit.

The Canadian Dollar has lost a little ground to the Greenback in the past week but has managed to keep hold of recent gains against the other currencies, undoubtedly the Loonie has been hit with the drop in the oil price back below the $100 level in recent days. I think it will be more of the same for the Loonie this week as the US Dollar should remain strong.

Nothing of note on the calendar today, stocks are point a little lower on the opening so the US Dollar should remain supported as markets get set for tomorrow's US inflation report.