USD index gets stronger as investors move to save-haven assets

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

US Dollar             1.3000-1.3100

Euro                     1.3000-1.3100

Sterling                1.5250-1.5350

WTI Oil (opening level) $93.50

The US Dollar index is considerably stronger this morning as investors flee the stock market after Fed Chair Powell's speech on Friday where we reiterated that the Fed will continue aggressive interest rate hikes to combat inflation even if it puts the US economy into recession. As I expected stocks crashed after the announcement (the Dow closed down over 1,000 points), US bond yields jumped and commodity prices fell all in a response to the Federal Reserve reaffirmation of their current policy. 

The Canadian Dollar suffered at the hands of the stronger US Dollar as at one point overnight USD.CAD traded near 1.3075 (0.7648) before pulling back a little early this morning. Most commodity currencies suffered considerable losses overnight as the threat of a recession has pushed the price of most commodity prices lower and dragged lower the corresponding currencies. Oil has maintained current levels but I think that is based on possible supply issues going forward, oil demand should drop over the coming weeks as the global economy weakens. I would expect the Loonie to weaken further this week as the US Dollar continues to benefit from investors fleeing the stock market.

Nothing of note on the economic calendar today, the US Dollar should remain strong, USD.CAD should remain above the 1.3000 level for a while and at this point the Dow Jones is pointing some 300 points lower on the opening so it looks like the carnage on the stock markets will continue.