American dollar is pointing lower as markets react to the US inflation report

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

US Dollar             1.2900-1.3050

Euro                     1.3650-1.3750

Sterling                1.5950-1.6050

WTI Oil (opening level) $103.20 (Oil price is up $2 from yesterday's opening level)

The US Dollar Index is marginally weaker this morning in a fairly quiet market as the world's financial markets get ready for the US April inflation report. Overnight stock markets were all higher as China was able to produce some positive news on its fighting the spread of the virus. That positive news may be offset by the reports that Gazprom will be shutting down a natural gas pipeline that flows through Ukraine due to operational issues, that move could send all commodity prices much higher in the coming days.

The Canadian Dollar was able to make some small gains against the US Dollar overnight as USD.CAD opens the day at the 1.2960 (0.7716) level, it also held its own against the other currencies so overall the Loonie remains steady ahead of the day's activity.

All eyes will be of course on the US inflation report this morning and the market is expecting a reading of 8.1% which will be down slightly from last month's 8.5% reading. If the rate comes in higher than expectation, I think you will see a big drop in stocks and a big jump in the US Dollar. Right now stocks are pointing to a higher opening but that can change very quickly with a strong inflation report. Lots of volatility ahead.