USD index continues to benefit from the weak stock market

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

US Dollar             1.3750-1.3850

Euro                     1.3350-1.3450

Sterling                1.5250-1.5350

The US Dollar index is again higher as it had been over the last few days of last week. The Dollar continues to benefit from a stock market that just can't seem to get any forward momentum going and worries about a further escalation of the war in Ukraine continue to that downward trend.

Early last week I talked about the Bank of Japan intervening in the FX markets to support the Yen and I mentioned that these bouts of activity were rarely successful long-term, as it happens USD.JPY is almost back at levels last seen when the central bank first intervened so we will see if they will be back at it this week.

Same old story for the Loonie to start the week, it has lost ground to the stronger US Dollar but has picked up some gains against the other currencies so I look for the Loonie to continue down this path for the next few sessions.

A big week on the calendar as we get the Fed's minutes being released on Wednesday followed by the US September Inflation report on Thursday. A strong inflation report will give the Fed reason to keep pushing interest rates higher and give the Greenback another boost.