Fed raises interest rate by 0.25% despite banking turmoil

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

US Dollar         1.3600-1.3700

Euro                 1.4800-1.4900

Sterling            1.6775-1.6875

WTI Oil (opening level) $70.55

The US Dollar index is marginally weaker this morning as the Fed announcement pretty much played out as I thought it would. The Federal Reserve did announce another 0.25% interest rate hike to bring the level to 4.25% but also downgraded their language a little on the expectation for future rate hikes so it looks now that they may be another quarter point hike this year but the end is in sight for higher interest rates as the Fed has to balance the inflation rate against a possible recession and the banking crisis. Yesterday also saw the Swiss National Bank raise interest rates by 0.50%, the Norwegian Central Bank by 0.25% and this morning the Bank of England followed suit by increasing rates by 0.25% as well so the appetite for increased interest rates remains in place.

The Canadian Dollar picked up some strength against the weaker US Dollar as USD.CAD fell to trade at 1.3650 (0.7326) before giving back some strength early this morning. The Loonie did not fare as well against the other currencies so it looks like our Dollar will continue to struggle in the coming weeks.