USD index is set to record its first negative month in quite a while

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

US Dollar             1.2650-1.2750

Euro                     1.3600-1.3700

Sterling                1.6000-1.6100

WTI Oil (opening level) $115.70

The US Dollar Index is again marginally weaker this morning as the Dollar Index is set to record its first monthly drop in quite a while. Encouraging data, a Federal Reserve that may moderate interest rate hikes going forward and a moderating rate of inflation seems to have for the moment changed investors sentiment where they are willing to take a greater risk profile and put more investment into the stock market and out of US treasury products. We will see if this holds over the coming weeks.

The Loonie starts the week on a positive note with USD.CAD dropping to trade at 1.2680 (0.7886) so once again the exchange rate has rebuffed the 1.3000 level and continues to range trade. The Loonie also picked up some gains against the European currencies so overall a good start to the week.

With the US closed for the holiday currency markets should be subdued and trade in a tight range. Tomorrow the Loonie will be front and centre as we get the Canadian GDP report for the 1st quarter.