American dollar hits a 20-year high

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

US Dollar             1.2900-1.3000

Euro                     1.3600-1.3700

Sterling                1.5950-1.6050

WTI Oil (opening level) $106.60 (Oil price is down $4 from Friday's opening level)

The US Dollar Index opens the new trading week on another roll as it hits a 20-year high. Weak stock markets and higher US interest rates continue to push the Greenback to new heights, US 10-year treasury yields now have traded above 3% which is a 31/2 year high for this bond. With the Federal Reserve committed to further interest rates hikes later in the year there is no reason to think the US Dollar won't stay supported over the medium term.

The Canadian Dollar is much weaker this morning as the markets seem to have caught up with the Loonie. USD.CAD opens the day above the 1.2930 (0.7733) level for its highest level in weeks, just last week it traded at 1.2730 (0.7856) so the Loonie is suffering at the moment. It also lost a lot of ground to the other currencies so overall a tough start to the week for our dollar.

Stock markets were all lower last night and the Dow Jones looks set to get crushed on the opening as it is showing a loss of over 500 points to start the day, there is no reason  to think the US Dollar will not continue to push higher and USD.CAD should test 1.3000 (0.7692) at some point this week.