The Greenback lost some value for the first time this week in response to the better-than-expected Chinese economic recovery

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

US Dollar         1.3550-1.3650

Euro                 1.4450-1.4550

Sterling            1.6350-1.6450

WTI Oil (opening level) $76.26

The US Dollar index is marginally weaker this morning as the Greenback gave back some strength for the first time this week in response to economic numbers that shows the Chinese economy is reporting better than expected progress in coming out of their Covid lockdowns. Overnight stock markets liked this news as did the New Zealand and Australian Dollars whose economies are tied very closely to China.

The Canadian Dollar is a little stronger this morning but that is after a tough day yesterday that saw USD.CAD top out near the 1.3650 (0.7326) level before falling back earlier this morning. The Loonie weakened off in response to the GDP report that showed the economy contracted 0.1% in December and growth was flat in the final quarter of 2022. This number will reinforce the Bank of Canada policy to pause interest rate hikes here in Canada but with the US still increasing interest rates the Loonie will continue to come under pressure going forward.

Stocks are looking to build on the overnight gains, after a down day yesterday the Dow Jones is pointing some 80 points higher to start the day. There is nothing of note on the economic calendar this morning so look for the Dollar to remain trading with a weaker bias throughout the day.