USD jumps higher as FED officials advocate for interest rates above 5%

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

US Dollar             1.3450-1.3550

Euro                     1.4550-1.4650

Sterling                1.6600-1.6700

WTI Oil (opening level) $79.21

The US Dollar Index is a little weaker this morning but that is only after it jumped quite significantly on Wednesday. Stocks were all much lower yesterday and the Dollar jumped on comments from different Federal Reserve officials that indicated they felt that US interest rates need to move above 5% to have the best effect on inflation. In addition, US Retail Sales yesterday fell the most it has in the last year and manufacturing output fell the most it has in two years so it looks like investors are getting increasingly worried about a US recession.

The Canadian Dollar which can be quite sensitive to changes in market risk appetite from investors bore the brunt of the stronger US Dollar yesterday as USD.CAD jumped from a low of 1.3360 (0.7485) to trade at 1.3500 (0.7407) as I write this morning. The Loonie also lost about 100 points of strength to both the Euro and Pound so overall a tough day for the Canadian Dollar and once again we see that the Loonie cannot hold onto any strength for very long.

Nothing of major interest on the economic calendar for today, Stocks after a tough day yesterday are again pointing lower this morning. Currently the Dow Jones is pointing some 250 points lower so it could be a very bad day on the equity markets which should provide more room for the US Dollar to move higher.