Inflation in Canada hits 7.7%.

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

US Dollar             1.2900-1.3000

Euro                     1.3550-1.3650

Sterling                1.5800-1.5900

WTI Oil (opening level) $105.90

The US Dollar Index is marginally stronger this morning as the testimony of Fed Chair Powell to congress yesterday did little to dampen the market fears of an oncoming recession due to the interest rate hikes that are battling inflation. It certainly looks like another 0.75% increase to the Federal Reserve interest rate will happen next month which will continue to support the US Dollar.

The Canadian Dollar is marginally stronger this morning as it picked up some benefit from the May inflation report. The economy reported that prices rose 7.7% since May of last year and that is the highest level since January 1983 when prices jumped 8.2%. USD.CAD fell to trade yesterday at 1.2915 (0.7742) before losing some ground on overnight strength from the US Dollar.

Stocks recovered from the poor start yesterday and finished higher, this morning they are pointing a little higher on the opening so the market will continue to closely watch Powell's next round of testimony to Congress for any sense of direction on the economy. In the meantime, the Canadian Dollar should continue to range trade throughout the day as it try's to break above the 1.3000 (0.7692) level.