Canadian Dollar takes advantage of the weaker USD index

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

US Dollar             1.2700-1.2800

Euro                     1.3600-1.3700

Sterling                1.6025-1.6125

WTI Oil (opening level) $113.37

The US Dollar Index is marginally stronger this morning but that is only after a tough two days for the Greenback that called into question just how aggressive the Fed will be on future interest rate hikes. While it is pretty certain that the next two interest rate hikes are set at 0.5% each the Fed was giving some mixed signals in their meeting minutes that they may then back off on the pace of hikes if the economy starts to slow. Given that the US Dollar strength was precipitated on higher interest rates the Greenback may take a big dive if it is thought that interest rates will level off in the coming months.

The Canadian Dollar was able to take advantage of the weaker US Dollar and opens the day at the 1.2730 (0.7855) level, so once again we see the Loonie recover when ever it approaches the 1.29/1.30 levels. For now, the Loonie should remain range bound.

Lots of US Data out this morning which should give the market a good picture of the US economy, after a strong day yesterday stocks are pointing a little lower this morning, so we may yet see further pullback in the US Dollar.