USD index recovers from a 7-month low

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

US Dollar             1.3350-1.3450

Euro                     1.4350-1.4450

Sterling                1.6250-1.6350

WTI Oil (opening level) $74.85

The US Dollar Index is marginally stronger this morning as the index recovered from a seven-month low in response to comments from a couple of Fed committee members yesterday where they indicated that they see interest rates moving above 5% in the coming months. Fed Powell is due to give a speech today and investors will be watching the content of that speech to see if he mentions his thoughts on where US interest rates will top out. Clearly the US Dollar and stock markets are still very responsive to any interest rate talk and will continue to be for some time.

The Canadian Dollar is weaker this morning with USD.CAD trading above yesterday's low of 1.3360 (0.7485). The Loonie lost the most ground to the Euro as EUR.CAD move about 100 points higher to trade near 1.4380 this morning, yesterday saw the Euro make a big jump against the US Dollar and the Loonie was not able to match it.

In addition to the Powell speech today we also get a speech from Bank of Canada Governor Tiff Macklem, the Canadian markets will be watching for any comments on our economy and indication on where interest rates will settle.