USD index takes a break after reaching a 19-year high on Friday

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

US Dollar             1.2950-1.3050

Euro                     1.3600-1.3700

Sterling                1.5900-1.6000

WTI Oil (opening level) $110.00 (down $6.00 since Friday)

The US Dollar Index is marginally lower this morning but that is only after it hit a 19-year high on Friday. In overnight news, the Euro remained steady as French President Macron suffered a big election loss as his party lost their majority in parliament, a move which will make it difficult to move his agenda forward. In China the Central Bank there announced they were not changing their key lending rate keeping rates in place to support growth as a large part of the country is still in COVID lockdown.

In the UK, the Pound looks like it could be vulnerable in the coming weeks as there are a large number of industrial actions looking to take place throughout the country. Militant labour unions have always been a big part of the UK makeup and it looks like that country will be now be faced with lots of strike action in the face of rising inflation and declining real wages.

The Canadian Dollar opens the week a little stronger this morning but on Friday it did trade above the 1.3000 (0.7692) level for a while. USD.CAD opens the day at the 1.2990 (0.7698) level so I am sure the exchange rate will take another run higher at some point this week.

Nothing on the calendar for today but later in the week we get the Canadian Inflation report for May which the Bank of Canada will be looking closely at. Inflation is expected to show another jump so we will see how the BOC reacts to it in July.