Australian dollar gains more than 1% as the country reported a big jump in the inflation rate

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

US Dollar             1.3350-1.3450

Euro                     1.4500-1.4600

Sterling                1.6425-1.6525

WTI Oil (opening level) $80.00

The US Dollar Index is marginally stronger this morning in what was a quiet overnight session. The Euro gave back some early strength to the Dollar despite better-than-expected economic data that shows the ECB has some room to continue to increase interest rates without hurting the economy. In the UK, the Pound was a little higher but that was after a big drop on Monday when their economy produced some negative results, GBP.USD went from a high of 1.2400 to trade at 1.2270 yesterday before rebounding so at the moment Sterling is very vulnerable to negative news.

The biggest currency move overnight came from the Australian Dollar as that nation reported a big jump in the inflation rate which will lead to further interest rate hikes from their Central Bank.

The Canadian Dollar traded in a narrow overnight range as we await word from the Central Bank this morning. It is fully expected that the BOC will increase interest rates another 0.25% which will bring the rate to 4.50%. Of more importance will be their accompanying statement where they will let the market know what is going on with the economy and their plans for the next meeting.

Stocks are pointing a lot lower this morning so we may see the Dollar jump a little as the day goes on, I also think markets will be watching to see the response from Russia as Germany has agreed to send battle tanks to Ukraine to help with the war effort.