CAD looks steady ahead of the Canadian employment report

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

US Dollar             1.2500-1.2600

Euro                     1.3425-1.3525

Sterling                1.5700-1.5800

WTI Oil (opening level) $120.50

The US Dollar Index is only slightly stronger this morning but that was after a day yesterday that saw the Dollar lose some ground to the Euro which is moving stronger on the expected rise in EU interest rates, stronger than expected 1st quarter GDP numbers and the ending of the ECB pandemic stimulus program. With the US Federal Reserve ready to hike interest rates next week and again in July I am not sure how long it will be before the Greenback starts to push forward once again but I think it will at some point.

It was interesting to note that yesterday the World Bank reduced their expectation for global economic growth this year to 2.9% down form their January prediction of 4.1%. Clearly the war in Ukraine, high commodity prices and runaway inflation is hurting global growth and still may yet lead to global stagflation going forward.

The Canadian Dollar has been steady for the last couple of sessions and is holding onto its recent strength but is unable to extend any more gains at the moment. USD.CAD opens the day at the 1.2535 (0.7977) level and looks set to stay range bound until we get Friday's Canadian employment numbers and the US inflation report.

Asian stocks were higher overnight but after a strong day yesterday North America looks set to lose ground on the opening this morning, currency markets should remain steady ahead of tomorrow's ECB announcement on interest rates and then the US inflation report on Friday.