Euro reaches a 9-month high against the USD

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

US Dollar             1.3300-1.3400

Euro                     1.4500-1.4600

Sterling                1.6500-1.6600

WTI Oil (opening level) $82.46

The US Dollar Index is lower this morning as the Euro hit a 9-month high early in the overnight session. Investors were reacting to comments from a couple of ECB committee members that were advocating for two more 50 basis point interest rate hikes in the coming months. If that is the case and the Fed continues to reduce its interest rate hikes to 0.25% then we should see further appreciation of the Euro in coming weeks.

The Canadian Dollar starts the week on a positive note as USD.CAD continues its rally which started on Friday and opens the day near the 1.3350 (0.7491) level, the Loonie also picked up some gains against the other currencies so overall a good start to the week. The Loonie will be front and centre on Wednesday when the market gets the latest interest rate hike from the Bank of Canada and we will see what they have to say about inflation and further interest rate hikes.

A quiet day on the calendar today, stocks are pointing to a flat opening so currency markets should continue to trade in a tight range.