EUR picks up some gains as the ECB officials call for higher interest rates

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

US Dollar             1.3400-1.3500

Euro                     1.4400-1.4500

Sterling                1.6250-1.6350

WTI Oil (opening level) $76.20

The US Dollar Index is for the most part unchanged this morning as investors get ready for tomorrow's US inflation report. Markets were left disappointed yesterday when Fed Chair Powell did not touch on the subject of US interest rates and where he thought they would end up in his speech. It looks like the Fed will continue to watch the data and if tomorrow produces a higher-than-expected inflation rate then we will see the expectation grow for another 0.50% hike later this month which will support the dollar and hurt stock markets.

No surprise here but the Canadian Dollar is following very familiar trading patterns and once again the Loonie has given back most of the strength it picked up at the end of last week. USD.CAD opens the day near the 1.3425 (0.7449) level, the currency pair is off its highs from overnight but the Loonie still looks a bit vulnerable at the moment. It also lost a bit of ground to the Euro overnight which was much stronger against the USD as there were a few ECB officials overnight calling for higher interest rates in Europe.

Nothing of note on the calendar for today, stocks are pointing higher again this morning so the currency market should remain relatively stable ahead of the inflation report tomorrow.