Canadian investors await the March inflation report

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

US Dollar             1.2500-1.2600

Euro                     1.3550-1.3650

Sterling                1.6350-1.6450

WTI Oil (opening level) $103.66 (Oil price pulls back a little overnight)

The US Dollar Index is marginally weaker this morning but pressure for higher interest rates in the US continue to help support a stronger Greenback, US 10-year treasury notes reached a high overnight of 2.981%, their highest level since December 2018.

The Euro was able to recover some strength overnight put remains under pressure from the war in Ukraine and a French Presidential election this weekend that may be too tough to predict. If the far-right candidate Marine Le Pen comes out on top then you will see the Euro take a big hit as Europe would have their own version of Donald Trump gain power.

The Japanese Yen continues to struggle at the moment with USD.JPY reaching new highs last seen in 2002, The Japanese Finance minister was quoted overnight as saying that such a weak currency can not be good for the overall economy, it may take some direct intervention in the currency markets by the Bank of Japan to stop the slide.

The Canadian Dollar was able to take advantage of the weaker US Dollar and it extended some gains against most currencies, USD.CAD opens the day at the 1.2535 (0.7978) which is lower than yesterday's rate but still well within recent ranges. The Loonie should see some activity today surrounding the release of the March inflation rate, the market is expecting a rate of 6.1% which would be higher than last month's 5.7% and may force the hand of the Bank of Canada to increase interest rates at a higher pace which would support the Loonie.