Euro recovers some of its recent losses

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

US Dollar             1.2750-1.2850

Euro                     1.3650-1.3750

Sterling                1.5950-1.6050

WTI Oil (opening level) $110.68

The US Dollar Index is marginally weaker this morning after the long weekend in Canada. The Euro continues to recover as markets reacted to comments from ECB President Lagarde that interest rates in the common market will move out of negative territory by the end of the third quarter. Euro has been on a steady rise since the ECB indicated that they will start to increase interest rates to combat inflation, EURO.USD hit a high of 1.0730 this morning which is a new multi-week high. 

Sterling on the other hand took a big dive this morning as an indicator of private sector growth dipped worrying investors about a possible recession in the UK. GBP.USD fell from a high of 1.2590 to trade at 1.2490 in a matter of minutes on the report, if the Bank of England holds of on further  interest rate hikes to help stimulate the economy then you will see the Pound drop a lot further.

The Canadian Dollar continues to range trade in narrow ranges against it's southern neighbour, USD.CAD opens the new trading week at the 1.2790 (0.7818) level right dab in the middle of the recent range. Like the US Dollar the Loonie has picked up some significant gains against the British Pound but it also lost a little ground to the resurgence Euro so it remains a mixed bag at the moment.

The highlight on the calendar this week will be the 2nd quarter Canadian GDP report due out on Thursday. Ahead of this report markets will continue to focus on what the stock market is doing, after a strong day of recovery yesterday the Dow Jones is pointing lower this morning so the currency market could be in for some for some more volatility.