Multiple rate hikes are likely ahead as inflation is not coming down fast enough

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

US Dollar         1.3350-1.3450

Euro                 1.4300-1.4400

Sterling            1.6100-1.6200

WTI Oil (opening level) $78.48

The US Dollar index is stronger this morning as the markets react to the news that while inflation in the US is moderating it is not coming down as fast as the Federal Reserve was hoping for which according to some Fed official’s comments from yesterday may lead to more prolonged interest rate hikes throughout the year.

The Canadian Dollar once again could not hold onto its strength from the previous sessions as USD.CAD opens the day back above the 1.3400 level (0.7463). It was not a total loss for the Loonie as it was able to pick up some small gains against the other currencies which had weakened off more against the Greenback after the inflation report.

Stocks after a tough day yesterday are again pointing lower which is not surprising given that US interest rates may be going higher than previously thought. We get US Retail Sales for January this morning which are projected to return to positive territory so that may help stocks a little bit in the short-term and slow the progress of the dollar.