American dollar lost some of its gains as stock market sees relief

WTI Oil (opening level) $107.90

The US Dollar Index opens the last week of June marginally weaker as investors are continuing to weigh the overall effect of higher interest rates on global growth. Stocks for the moment are poised to open stronger after a positive day on Friday and the Dollar gave back some gains but in the long term I think we will need to see inflation start to moderate before global Central Banks start to dial back aggressive interest rate hikes. Until we see that the US Dollar should remain supported.

The Canadian Dollar opens the day a little stronger but at the moment if is firmly entrenched in the 1.2900-1.3000 trading range and can't seem to break out on either side. The Loonie did pick up some small gains against the other currencies but at the moment the Loonie is still looking for an overall direction.

We get a slew of US Secondary data this week that may be watched a little closer by investors  to see some early signals on what is going on with the US economy in light of the higher interest rates but we also get the final update of US GDP growth for the 1st quarter so we could see some volatility as we head into the holiday weekend in both Canada and the US.